EUR/JPY: testing key levels on the downside and fragile ahead of ECB

Currently, EUR/JPY is trading at 122.08, down -0.11% on the day, having posted a daily high at 122.62 and low at 122.03.

EUR/JPY is testing the downside ahead of the key 121.90 support area while USD/JPY drops below the 114 handle and down to test the 200 1hr 200 sma at 113.42 for the third time this week. The upside in the dollar vrs the yen has lost momentum although the euro is firm ahead of the ECB tomorrow, albeit fragile on a political stance and exposes the cross to similar fait.

ECB to address three broad areas: QE, shortage of securities and the repo market - BBH

EUR/JPY levels

Current price is 122.12, with resistance ahead at 122.25 (Daily Open), 122.35 (Hourly 20 EMA), 122.38 (Daily Classic PP), 122.44 (Monthly High) and 122.44 (Weekly High). Next support to the downside can be found at 122.03 (Daily Low), 121.94 (Yesterday's Low), 121.81 (Daily Classic S1), 121.79 (Hourly 100 SMA) and 121.36 (Daily Classic S2).

"The market remains well supported on dips to 118.45/ 21st July 2016 high and the 200 day ma at 118.53 and while above here it is immediately bid," explained analysts at Commerzbank, adding, "Intraday dips are indicated to hold circa 120.90/119.50. Below 118.45 lies 116.37/29, this is where the September and October highs were made. Longer term the market has based."