• EUR/JPY is trading in a narrow range with day's high at 122.32 and lows at 121.70.
   
• Technicals on daily charts support downside in the pair. The pair is holding strong trendline support at 121.70 and weakness only on breaks below.
   
• BOJ surprised and disappointed markets with policy inaction despite cutting its growth and inflation forecast. 
   
• With a high hurdle to intervention, there is little to prevent additional yen strength. 
   
• The single currency on the other hand is extending its upside momentum at the beginning of the week, partly supported by risk-off on poor Chinese manufacturing activity data released over the weekend.
   
• Data wise in Euroland, final April’s manufacturing PMIs are due followed by speeches by ECB’s M.Draghi and BuBa’s J.Weidmann. 
   
• Break below 121.70 will drag the pair to next support at 121.43 (lows for the week ending Mar 23rd 2013) and then 121.21 (lows for the week ending Feb 1st 2013).
   
• On the upside resistance is seen at 122.32 (session highs), 123 and then 123.35 (April 18th highs)