EUR/JPY retreats from highs, back near 115.30

After climbing to the 115.70 area during overnight trade, EUR/JPY has now surrendered part of those gains and it has returned to the 115.35/30 band.

EUR/JPY gains capped near 116.40

The cross is struggling to keep the trade in the positive territory today following Monday’s deep pullback to the 115.00 neighbourhood.

The renewed buying interest around the Japanese currency has been weighing on the cross as of late, dragging it lower after hitting multi-week tops near 116.40 last Friday.

Ahead in the week, the ECB meeting carries the potential to be a ‘non-event’, although market consensus expects the central bank to extend its QE programme beyond March 2017. It gets more interesting on the BoJ side, as opinions remain pretty divided regarding the possibility that the central bank could announce extra measures later in the month.

EUR/JPY relevant levels

At the moment the cross is gaining 0.10% at 115.40 facing the immediate resistance at 116.41 (high Sep.2) ahead of 117.96 (100-day sma) and finally 118.49 (high Jul.21). On the other hand, 114.50 (55-day sma) followed by 114.15 (20-day sma) and then 112.28 (low Aug.5).