EUR/JPY surges to 130.00 mark on not so dovish Draghi

Having refresh session lows near 128.78 level post-ECB announcement, the EUR/JPY cross caught some strong bids and has now jumped to fresh session tops.

The cross surged over 100-pips and surged to the key 130.00 psychological mark after the ECB President Mario Draghi, during his opening statement at the post-meeting press conference, was noted saying that the incoming data confirms strengthening of the Euro-zone economy and has been broadening. 

   •  Draghi Speech: Monetary policy has continued to secure very favourable financing conditions needed

Markets, however, seemed unaffected by Draghi's cautious remarks that measures of underlying inflation have yet to show convincing signs of a pickup and that the vote for no changes to forward guidance was unanimous. 

   •  Draghi Speech: Unanimous in choosing no change to guidance

Looking at the broader picture, the cross has broken through the six-day old trading range and hence, a follow through short-covering, leading to an extension of the pair's strong up-move, now seems a distinct possibility.

Technical levels to watch

Sustained momentum beyond the 130.00 handle now seems to lift the cross towards 130.30-35 intermediate resistance en-route yearly tops hurdle near 130.75-80 region.

On the flip side, any pull-back now seems to find immediate support near 129.50-45 region, below which the cross could turn vulnerable to head back towards retesting sub-129.00 level.