In view of Jane Foley, Senior FX Strategist at Rabobank, a potential test of 124.00 lies ahead of the cross. Key Quotes “The JPY was a little slow to response to the better tone in risk appetite that propelled stock markets higher from the middle of February”. “That said, the JPY was one of the worse performing G10 currencies in March suggesting a little life has returned to the carry trade”. “Although the JPY softened against the EUR in March, EUR/JPY it is yet to break out of the downtrend that has been in place since June 2015”. “In the coming months we expect the EUR to be tested not just by the prospects of further ECB easing but by concerns that a Brexit may damage the coherence of the EU which is already in the midst of an immigration crisis”. “We also see scope for further bout of risk aversion this year in response to both the concerns over slow world growth and geopolitical events. Insofar as the JPY is the better safe haven currency we see potential for further downside towards the EUR/JPY 124 area”. For more information, read our latest forex news.