EUR/JPY last trades at Y129.25,............>

EURO-YEN: EUR/JPY last trades at Y129.25, extending its downturn from Monday's

high at Y130.20. 

- The pair has moved lower as risk off flows play out early on Tuesday and JPY

benefits from its safe haven status, outperforming against the other majors in

early Asia-Pac trade. 

- UBS flow data for last week suggested that "JPY was the most bought G10

currency on a normalised basis, experiencing heavy inflows in a week where

nationwide CPI printed solidly and the global risk backdrop remained weak." 

- Political uncertainty around Italy's collision course with the EU over its

fiscal plan weighs on the EUR as Rome still intends to break EU budget rules

despite declaring openness to a "constructive dialogue". 

- Bulls now need to retake the Y130.14 level before targeting the 200-DMA at

Y130.66. Bears secured a close below the 100-DMA at Y129.53 and look to

challenge last week's lows at Y128.32.