EUR/JPY off lows, still weaker below 134.00 handle

   •  ECB to boost QE in size/duration, if needed.
   •  Muted domestic price pressure.
   •  Substantial degree of accommodation was still needed.
   •  Positive over reaching medium-term inflation target.

The EUR/JPY cross maintained its offered tone through the post-ECB meeting press conference, albeit has managed to recover few pips from session lows. 

The shared currency continued losing ground after the ECB President Mario Draghi said that the central bank stands ready to boost QE in size/duration, if needed, and foresees muted domestic price pressures, with core inflation yet to show convincing upward trend. 

Draghi reaffirmed that rates are expected to remain at current level for an extended period of time, even well past the end of bond purchase program, as substantial degree of accommodation was still needed. 

The bulls, however, seems to have gained some respite from Draghi's positive comments over reaching medium-term inflation target. Adding to this, a recovery witnessed around the USD/JPY major also supported the pair's rebound back closer the 134.00 handle. 

Technical levels to watch

A follow through selling pressure has the potential to continue dragging the cross towards 133.45 intermediate support ahead of 133.20 level and the 133.00 handle.

On the flip side, a sustained recovery back above the 134.00 handle might trigger a short-covering move towards 134.30 level en-route a strong supply zone near mid-134.00s.