Jane Foley, Senior FX Strategist at Rabobank, sees the cross heading towards the 122.00 level in the next periods. Key Quotes “Measured from the start of the year the JPY is the best performing G10 currency on the back of safe haven inflow”. “Through the month of January the EUR was the second best performing currency. Last year the EUR began to show safe haven characteristics which we frequently argued were due to its position as a funding currency and the Eurozone’s large current account surplus”. “That said, EUR/JPY has been in a downtrend since the middle of last year. In recent sessions the falls in EUR/JPY have accelerated, taking the pair back to levels not seen since 2013. The most recent falls in EUR/JPY are being influenced by concerns about the implications for EU coherence if there was a Brexit later this year. This appears to be testing the ability of the EUR to absorb safe haven flows”. “It is possible that ECB President Draghi will underpin the softer tone of the EUR by underpinning his dovish position at the March 10 policy meeting. EUR/JPY has already dropped by 5.8% percent so far this year. We see scope for further downside towards the EUR/JPY 122 area”. For more information, read our latest forex news.