EUR/JPY: breaks multiple key daily moving averages, eyes 122 handle

Currently, EUR/JPY is trading at 121.57, up 0.83% on the day, having posted a daily high at 121.92 and low at 120.49.

ECB: Dovish with a hawkish blend - ING

EUR/JPY has rallied along with the euro crosses on the back of the ECB's less dovish tone. "All in all, the ECB keeps its easing bias but has also started to gradually incorporate some hawkish sounds," explained Carsten Brzeski at ING Bank, adding,"This strategy is preparing the grounds for a tapering announcement after the Dutch and French elections if growth and inflation follow their current paths, but keeps all options open if the current optimism turns out to be unjustified."

Japan’s Aso: No interest in adopting helicopter money - RTRS

EUR/JPY levels

EUR/JPY has now broken three critical levels over the course of very late Feb and this month being the 20-d sma, 50-d sma and 200-day smoothed moving averages. The bullish move is a recovery of the 118.20 lows and mid-Dec 2016 sell off from the 124 handle leaving the cross back in bullish territory. 

Analysts at Commerzbank explained that EUR/JPY continues to recover from the 118.45/35 band of support – this is the location of the 50% retracement of the move up from October, the 38.2% retracement of the move up from June 2016 and the July 2016 high. "Longer term outlook is positive: Looking for strong recovery off the 118.50-116.37 band. Where are we wrong? Below 118.25 lies the 117.57 200 day ma and the 116.69/37 50% retracement."