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EUR/JPY upside stalled at hourly 50-MA

FXStreet (Mumbai) - The bid tone on the EUR improved following less dovish talk by the ECB policymakers, although the rise in the EUR/JPY pair appears to have come to halt around its hourly 50-MA located at 134.25.

First gain in four days

The EUR/JPY cross is up ahead of the US session for the first time in four days as policymakers at the ECB do not see the necessity do more QE at the current juncture. Meanwhile, upbeat stock markets in Europe kept JKPY bulls at the bay.

The focus now shifts to ECB President Mario Draghi’s quarterly hearing at Brussels. The general consensus is that Draghi is likely to reiterate the weaker than expected recovery in the Eurozone and the bank’s readiness to do more if required.

EUR/JPY Technical Levels

At 134.10, the immediate resistance is located at 134.32 (daily high), above which the pair could extend gains to 135.00 (Sep 15 low). On the other side, support is located at 133.15 (Daily low) and 132.23 (Sep 4 low).

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