EUR/JPY aiming for a decisive move above 116.00 handle

Extending its break-out momentum above 50-day SMA, the EUR/JPY cross gained further traction after disappointing release of NFP data from the US and is now attempt a decisively move above 116.00 mark.

The pair’s initial leg of up-move to 116.00 handle, for the first time since July 29, was solely driven by selling pressure surrounding the Japanese currency on the back of rising expectations of further BOJ monetary stimulus. 

Adding to this, upbeat sentiment surrounding European equity markets is driving investors away from the perceived safety of the Japanese Yen, helping the cross to shrug-off slightly weaker-than-expected Spanish employment data and provided an additional boost.

The pair got an additional boost after disappointing US monthly jobs report provided an uplift to the EUR/USD major. In absence of any further releases, the pair might continue to take cues from the prevalent risk sentiment surrounding equity markets. 

Technical levels to watch

A follow through buying interest above 116.00 handle is likely to lift the pair immediately towards 116.50-60 horizontal support. On the downside, weakness below session low support near 115.50 level is likely to get extended towards Thursday's low support near 115.00 psychological mark.