EUR/JPY building on BoJ-led bullish momentum above 115.00 handle

The EUR/JPY cross extended its recovery trend from the seventh straight session and is now building on to its momentum above 115.00 psychological mark.

Currently trading around mid-115.00s, the highest level since Oct. 11, the pair gained traction after BoJ left its monetary policy unchanged. Spot prices gained further momentum after the central bank showed readiness to continue with its monetary easing measured in order to hit the 2% inflation target.

Meanwhile, a recovery staged in the EUR/USD major is extending further support to the bid tone around the major. Adding to this, stability in European equity market is denting the Japanese Yen's safe-haven appeal is adding to the ongoing bullish sentiment surrounding the cross. 

With BoJ monetary policy decision out of the way, focus now shifts to the much awaited Fed monetary policy decision on Wednesday and Friday's monthly jobs report (NFP), which would derive the safe-haven demand and eventually provide fresh impetus.

Technical levels to watch

From current levels, 115.79 (Oct. 11 high) is likely to act as immediate hurdle above which the cross is likely to make a fresh attempt towards reclaiming 116.00 handle. On the downside, renewed weakness below 115.00 handle, leading to a subsequent drop below session low support near 114.80, might now accelerate the slide towards 100-day SMA support near 114.50-55 region en-route 50-day SMA support near 114.30 area.