EUR/JPY gearing for a fresh break-out above 100-DMA

The EUR/JPY cross has been confined in a narrow trading band around 100-day SMA, consolidating its recent strong gains to over one-month high.

Currently trading just below 116.00 handle, offered tone around the Japanese Yen has been a key driver of the pair's up-move from last week's low around 112.00 neighborhood. Moreover, rumors of ECB trimming its bond-purchase program before the scheduled conclusion in March 2017 further contributed to the bid tone around the cross, lifting it to a five week high on Wednesday. 

Today's scheduled release of ECB's latest monetary policy meeting accounts might provide some impetus, while the broader risk sentiment would continue to derive the safe-haven demand of the Japanese Yen and eventually drive the cross from current levels.  

Technical levels to watch

On a sustained move above 116.00 handle (100-day SMA region), the cross seems to extend its near-term bullish trajectory immediately towards 116.55-60 horizontal resistance before attempting a move towards 117.00 round figure mark.

Meanwhile on the downside, reversal from current resistance area is likely to find support near 115.40 level below which the corrective move could drag the cross back below 115.00 psychological mark towards testing an important resistance break-point, turned strong support, near 114.35-30 region.