EUR/JPY consolidated near 3-week tops, comfortable above 130.00 handle

The EUR/JPY cross struggled for a firm direction and seesawed between tepid gains/minor losses near three-week tops.

The cross stalled its recovery move from over 1-1/2 month lows and now seems to have entered a bullish consolidation phase just below 130.70 supply zone amid lackluster trading action on Monday. 

The prevalent risk-off environment, as depicted by weaker trading sentiment around European equity markets was seen extending support to the Japanese Yen's safe-haven appeal and seems to be only factor keeping a lid on any further up-move for the EUR/JPY cross. 

Meanwhile, the ECB President Mario Draghi refrained from denting the prevalent positive sentiment surrounding the common currency by making no mention of the Euro's recent strength during his scheduled speech at the Jackson Hole Symposium. 

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Hence, extension of the pair's up-move, back above the 131.00 handle and closer to 1-1/2 year highs, now seems a distinct possibility amid absent fundamental drivers, in terms of any major market moving economic releases.

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Technical levels to watch

Momentum beyond 130.70 level is likely to get extended towards the 131.00 handle, above which the cross seems to aim towards retesting yearly tops resistance near 131.25 area.

On the flip side, any pull-back below the key 130.00 psychological mark now seems to find some fresh buying interest near the 129.80-75 region, which if broken might trigger a corrective slide back towards the 129.00 handle.