EUR/JPY extends the rebound to 121.50

Having a sharp sell-off witnessed yesterday, the cross in the EUR/JPY pair attempts a bounce in the Asian session this Friday, as dust settles over the ECB aftermath.

EUR/JPY looks to regain 5-DMA at 121.92?

Currently, EUR/JPY trades +0.31% higher at 121.42, testing session tops previously posted at 121.47. The rebound staged the cross can be mainly attributed to the extension of yesterday’s rally in USD/JPY, in response to a firmer greenback across the board and strengthening treasury yields across the curve.

While the EUR/USD pair remains under pressure near 1.06 handle, as markets absorb the dovish element announced by the ECB yesterday. In its policy decision, the ECB reduced the monthly asset purchases to EUR 60bn, at the same time extending the bond buying time-line at least until Dec 2017 end, and with President Draghi keeping the dovish tone intact. ECB meeting: Lower but longer - ING

EUR/JPY Levels to consider  

The pair has an immediate resistance at 121.91 (5-DMA), above which 122.67 (daily R1) could be tested. On the flip side, support is seen at 121.32 (10-DMA) that at 120.83 (3-day low).