EUR/JPY struggle with 114.50 continues ahead of ECB

The cross in the EUR/JPY extends its struggle to rise above 114.50 levels, having recovered from lows amid ongoing recovery seen in the USD/JPY pair.

EUR/JPY regains 114 and beyond

The EUR/JPY pair now gains +0.10% to 114.46, bouncing-off a brief dip to daily lows struck at 114.14 in late-Asia. The EUR/JPY cross defends mild gains and looks for a decisive break to the upside amid renewed strength seen in the EUR/USD pair heading into the ECB decision due later this session.

The cross also took advantage of a minor-recovery staged by USD/JPY from BOJ Nakaso’s remarks induced lows at 101.40 levels. However, the upside in EUR/JPY lacks follow-through mainly on the back of broad based USD weakness, which keeps the bearish pressures intact on USD/JPY.

All eyes now remain on the ECB’s take on the stimulus program at its monetary policy announcement due later in the mid-European session.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 115 (round figure) and from there to 115.57 (daily R2). On the flip side, support is seen at 114.14 (daily low) below which it could extend losses to towards 113.77 (daily S1).