FXStreet (Edinburgh) - In opinion of Senior Currency Strategist at Rabobank Jane Foley, the cross could try to stabilize around the 130.00 handle in H2. Key Quotes “The carnage in risky assets at the start of this year provided a strong boost to the safe haven yen. The EUR which has been exhibiting safe haven tendencies since the middle of the last year also performed well against a basket of currencies although it lost ground against the JPY”. “While the BoJ’s QQE programme is huge, as is stands the ECB is producing more dovish rhetoric than the Bank of Japan. However, continued gains in the JPY versus both the USD and the CNY will impact Japan’s external sector negatively and could force the BoJ to increase its monetary policy stimulus later this year in order to maintain the aim of hitting the 2% inflation target by the second half of the next fiscal year”. “The outcome of this spring’s wage negotiations will be crucial for Japan’s inflation outlook and could be a key determinant in the BoJ’s policy decisions in the coming months. Assuming a step up in dovish rhetoric from the Bank of Japan we expect EUR/JPY to stabilize close to the 130 level this year”. For more information, read our latest forex news.