EUR/JPY reverses ECB-led up-move, tumbles below 130.00 mark

The shared currency lost some ground against its Japanese counterpart, with the EUR/JPY cross now sliding below the key 130.00 psychological mark.

On Thursday, the cross stalled its modest recovery move from two-week lows touched on Wednesday and has now retreated over 100-pips from ECB-led swing highs near the 131.00 handle. 

A fresh wave of global risk aversion trade underpinned the Japanese Yen's safe-haven appeal and was seen weighing heavily on the cross through early European session on Friday.

This coupled with some initial signs of profit taking around the EUR/USD major further contributed to the pair's post-ECB retracement from weekly tops. 

With investors now looking past Thursday's ECB President Mario Draghi's comments on tapering, a follow through end-of-the week profit taking slide, back towards weekly lows support, remains a distinct possibility. 

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Nevertheless, the cross remains on track for its first week of losses in the previous three amid prevalent risk-off environment and absent fundamental drivers, in terms of any major market moving economic releases. 

Technical levels to watch

Immediate support is pegged near the 129.50-40 region, below which the cross is likely to turn vulnerable to break below the 129.00 handle and test 128.70 horizontal support. 

On the upside, any recovery up-move now seems to confront some fresh supply near the 130.35-40 region, which if cleared could assist the cross to make a fresh attempt towards conquering the 131.00 handle.