EUR/JPY snaps four-day losing streak, defends 133.00 handle

• EUR/JPY is mildly bid, trades above 50-day MA.
• The rising trend line offers support, pair holds above 133.00.
• Eyes ECB minutes.

The four-day losing streak in EUR/JPY ran out of steam in Asia near the support offered by the ascending trendline (drawn from Nov. 23 low and Dec. 15 low), allowing for a technical correction.

The cross clocked a session high of 133.65 and was last seen trading just above the 50-day MA of 133.36.

Focus on ECB minutes

Jens Nærvig Pedersen, Assistant Analyst Danske Bank A/S believes the ECB has no need to change its position just yet, still, the Euro may respond to nuances in the assessment of the new staff projections (including 2020), in particular on inflation. 

Meanwhile, the Japanese Yen may find takers and could drag down EUR/JPY is the European equity markets trade risk averse.

EUR/JPY Technical Levels

A violation at 133.00 (ascending trendline support) would open doors for 132.74 (100-day MA), under which a major support is seen at 132.05 (Dec. 15 low). On the higher side, breach of resistance at 133.88 (1-hour 50-MA) could yield 134.40 (23.6% Fib R of Jan. 5 high - Jan. 10 low) and 134.54 (Dec. 28 low on 1-hour chart).