EUR/JPY recovers to 134.50

FXStreet (Mumbai) - The shared currency managed to recover from daily lows and erased partial losses against the Japanese yen in the mid-European session, lifting EUR/JPY back above 134 handle. The euro was heavily offered in the European session against the yen after European Central Bank (ECB) officials announced accelerating asset purchases in May and June to avoid a market lull during the summer.

EUR/JPY back above 134 handle

Currently, the EUR/JPY pair trades lower by nearly -1% at 134.45, bouncing-off fresh weekly lows at 133.95. EUR/JPY dipped below 134 barrier, its lowest level in the last seven-days after European Central Bank (ECB) Governing Council member Benoit Coeure said the ECB will frontload asset purchases in May and June while ECB’s Noyer hinted for an extension of the QE program.

The bond yields across the Euro zone economies dropped after the ECB QE comments dragging the shared currency lower across the board.

While, the dollar-yen pair edged slightly higher on a broadly stronger US dollar as traders now await a set of US data for fresh updates.

EUR/JPY Technical Levels

To the upside, the next resistance is located at 135 levels and above which it could extend gains 135.83 (Today’s High) levels. To the downside immediate support might be located at 133.95 (Today’s Low) below that at 133.06 (May 5 Low) levels.