EUR/JPY breaks beyond 114.50 ahead of ECB

EUR/JPY’s recovery from nine-day lows gains further traction during the European session, driving the rate to fresh session highs above the mid-point of 114 handle.

EUR/JPY looks to reclaim 5-DMA at 115.00

The EUR/JPY pair now gains +0.24% to hit fresh session highs of 114.62, having finally chewed strong offers placed at 114.50 levels. The EUR/JPY cross extends rebound from three consecutive days of declines, as the euro clinches two-week highs versus the US dollar ahead of the ECB verdict.

However, the cross struggles to take on the recovery further towards 5-DMA on the back of a downside consolidation phase witnessed in the USD/JPY pair. Markets now look forward to the ECB policy decision, with wide expectations that the central bank may extend its bond-buying programme well beyond March 2017.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 115 (round figure) and from there to 115.57 (daily R2). On the flip side, support is seen at 114.14 (daily low) below which it could extend losses to towards 113.77 (daily S1).