Forex: EUR/JPY sticks below 121.00

One of the biggest victims of yesterday's volatile moves was the EUR/JPY, plunging from the 125.00 handle to as low as 118.77, as inconclusive results of the Italian elections are likely to lead to a return to the polls. The Anti-austerity vote was sound and clear.

The following bounce was capped at 121.36, and now the cross trades below 121.00. Volatility remains today as Fed's Bernanke is due to speak at 15:00 GMT.

"Intraday rallies should now find resistance at 122.00, 122.73 and should remain capped by 125.36 for a negative bias to be maintained (high from 25th February)", wrote Commerzbank analyst Karen Jones,