EUR/JPY sold-off near Monday’s high, ECB in focus

The EUR/JPY cross failed once again near 118.40 region and now comes down to test 118 handle as the JPY bulls appear to take charge as we head into early Europe.

EUR/JPY awaits ECB

The EUR/JPY pair trades +0.21% higher at 117.97, retreating from daily highs previously posted at 118.42. The EUR/JPY cross stalled its bullish run near the mid-point of 118 handle as the Japanese yen recovered some ground against its American counterpart amid retreat in the Asian equities, despite talks of the Japanese stimulus back on the table.

However, the cross finds support from a stronger EUR/USD, as markets reposition themselves heading towards the ECB decision due later in the mid-European session.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 118.42 (key resistance) and from there to 118.86 (daily R2). On the flip side, support is seen at 117.72 (50-DMA) below which it could extend losses to towards 117.38 (5-DMA).