EUR/JPY: Strong rally fades after Draghi comments

The euro moved to the upside on all fronts,
lifting the EUR/JPY is back to the highs of a month from the previous session, near the area 122.00

The crossing gained new traction after the ECB president Mario Draghi, at the press conference after the meeting, said that the downside risks to the economy have decreased even more. Adding to the opening statement positive, Draghi added that the economic expansion will continue strong and expand, while inflation was likely to rise in April.

Despite the optimistic outlook, Draghi reiterated that the necessary financing conditions very favorable to raise inflation to the target, while the assessment criteria of inflation remained unchanged and, therefore, attracted new pressures-of-sale around the common currency. After a reaction upward initial, the cross quickly reversed all its gains and now is headed back to the lower end in the range trading journal.

Investors continue to scrutinize the Draghi comments for clues about the stance of the monetary policy of the central bank, which eventually would have an influence on the sentiment surrounding the common currency, and could continue infusing the volatility through the crosses of the euro.

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