EUR/JPY eyeing 114.00 handle ahead of Draghi speech

The Japanese Yen remained well offered across the board, assisting the EUR/JPY cross to build on to the recovery momentum for the second straight session. 

Currently trading near fresh session peak level around 113.75-80 region, upbeat sentiment around European equity markets is driving investors away from the perceived safety of the Japanese Yen. 

Moreover, better-than-expected Monday's release of Euro-zone PMI prints and German IFO business climate index on Tuesday now seems to have halted ECB-led selling pressure around the shared currency and supporting the ongoing bullish traction around the EUR/JPY cross.

Moving ahead, the broader market risk sentiment would be an important factor driving the cross from current levels, while ECB President Mario Draghi's speech, later during US session, might revive uncertainty over the central bank's future plan over its ongoing QE program and infuse a fresh bout of voaltility around the EUR pairs.

Technical levels to watch

A follow through buying interest above 113.85 (Friday's high) should assist the cross through 114.00 handle towards 50-day SMA resistance near 114.15-20 region. On the downside, 113.60-50 area now becomes immediate support to defend, which if broken seems to accelerate the slide immediately towards session lows support near 113.35-30 region.