EUR/JPY jumps to 118.00 neighborhood, focus on Draghi speech

The Japanese Yen remained well-offered, with the EUR/JPY cross extending its recent up-surge and hitting a fresh 4-month high.

Currently trading around 118.00 neighborhood, a broad based Yen weakness remains the sole driver of the pair's near-term upward trajectory. On Monday, a sharper-than-expected drop in Japan's export and imports for the month of October added to the offered tone around the Japanese Yen. Moreover, a recovery staged by the EUR/USD pair from Friday's 11-month low touched on Friday, is further supporting the pair's ongoing bullish momentum on Monday for the third consecutive day, marking fifth positive session in the previous six. 

Investors now shift their focus to ECB President Mario Draghi's testimony before the European Parliament, later during NY session, which would be looked upon for fresh impetus and continuation of the pair's near-term recovery trend in the near-term.

Technical levels to watch

A follow through buying interest above 118.00 handle has the potential to continue boosting the cross further towards the very important 200-day SMA resistance near 118.75 region, with July monthly highs near 118.45-50 region acting as intermediate resistance. On the downside, sustained weakness below 117.50 immediate support now seems to drag the cross through session low support near 117.30 level, towards 117.00 strong horizontal support.