EUR/JPY awaits both BoJ and ECB, a bullish bias for 130.68 still?

Currently, EUR/JPY is trading at 128.89, down -0.03% on the day, having posted a daily high at 129.04 and low at 128.80.

moves in EUR/JPY have been relatively modest considering the key events in the BoJ and ECB scheduled for today. There was some profit taking in EUR/USD on the 1.15 handle that pulled bids in the cross while the yen rallied in London before US traders knuckled down and took on the bears, lifting Wall Street with improved earnings and risk sentiment.

"Investors are looking for excuses to re-buy the common currency, which means that fundamentally, the upside is favoured," argued Valeri Bednarik, chief analyst at FXStreet. However, the outcome of tonight's BoJ and ECB will be the catalysts for any near term direction. 

EUR/JPY levels

"The market has failed on its initial attempt on the the 200-week ma at 130.68 and is easing back from here," noted analysts at Commerzbank. "Dips lower should find that the previous May high offers initial support at 125.80, together with the 126.61 uptrends. Initial support is 127.35 the end of June low. Above 130.71/76 targets 134.32/61.8% of the move down from 2014. Where are we wrong near term? The uptrend guards 122.56/40, the 18th May low and the recent low," explained the analysts at Commerzbank.