EUR/JPY fades a bullish spike on Draghi's comments

The shared currency moved higher across the board, lifting the EUR/JPY cross back closer to previous session's one month low, near the 122.00 handle.

The cross gained fresh traction after the ECB President Mario Draghi, at the post-meeting press conference, said that downside risks to the economy have diminished further. Adding to the opening hawkish statement, Draghi further added that economic expansion will continue to firm and broaden, while inflation was likely to increase in April. 

Despite of the upbeat outlook, Draghi reiterated that very favorable financing conditions were necessary to raise inflation to target, while his criteria of inflation assessment remains unchanged and thus, attracted some fresh selling pressure around the shared currency. 

After an initial bullish reaction, the cross quickly reversed all of its gains and is now headed back to the lower end on daily trading range. Investors would continue to scrutinize Draghi's comments for hints over the central bank's further monetary policy stance, which would eventually influence sentiment surrounding the common currency and might continue to infuse volatility across the Euro crosses.