The EUR/JPY cross extended the near-term bearish momentum for the fifth straight session and has decisively broken below 114.00 handle.
Currently trading marginally below mid-113.00s, fresh monthly lows, the cross on Wednesday decisively broke-down of a 4-day old trading range and extended its weakness further below 50-day SMA. Renewed buying interest around the Japanese Yen, amid prevalent cautious investor sentiment, has been the key factor weighing on the cross. Meanwhile, a mild offered tone around the EUR/USD major has also failed to extend any support and halt the pair’s ongoing slide.
Investors will remain focused on Thursday's ECB monetary policy decision and subsequent press conference, which is known to infuse substantial volatility across EUR pair and should provide fresh impetus for the pair's near-term trajectory.
Technical levels to watch
A follow through selling pressure from current levels is likely to drag the cross immediately towards 113.00-112.90 support area, which if broken would turn it vulnerable to head back towards September monthly lows support near 112.10 area.
On the flip side, any recovery attempt towards 114.00 handle might now confront resistance at 50-day SMA near 114.20-25 region above which the cross is likely to extend the recovery trend towards 114.65-70 horizontal resistance en-route 100-day SMA strong resistance near 115.00-115.10 region.