EUR/JPY remains in bullish territory despite dovish Draghi and euro's sell-off

Currently, EUR/JPY is trading at 121.27, down -0.96% on the day, having posted a daily high at 123.38 and low at 121.05.

ECB will stay in the market – ECB’s Draghi

After an initial spike on the ECB's initial announcements when the ECB introduced the t-word - ING, the euro finally sold-off. The ECB still expects a very moderate and dampened recovery in the Eurozone with risks tilted to the downside and made several changes to its QE programme subsequently. Draghi was dovish in the Q&A and all in all, Carsten Brzeski Chief Economist, Germany, Austria at ING explained that while at least at first glance, today’s decisions looked, walked and quacked like tapering, ECB president Draghi gave his best to convince everyone that it is not tapering. "We tend to believe him, but whether markets will do so as well or rather give the ECB its very own taper tantrum remains to be seen."

Tapering not on sight – ECB’s M.Draghi

EUR/JPY levels

EUR/JPY has dropped heavily within the steep rising trend commencing late October that reached a high of 123.33 on the initial take up in the markets. However, the ross remains in bullish territory above 118.45/ 21st July 2016 high and the 200 day ma at 117.09 levels that could offer strong support ahead of 116.37/29 where the September and October highs were made. 

Current price is 121.27, with resistance ahead at 121.52 (Daily Classic S3), 121.77 (Daily Classic S2), 121.96 (Hourly 100 SMA), 122.03 (Yesterday's Low) and 122.11 (Daily Classic S1). Next support to the downside can be found at 121.11 (Weekly Low), 121.10 (Hourly 200 SMA), 121.05 (Daily Low), 120.52 (Weekly Classic PP) and 119.45 (Daily 20 SMA).