EUR/JPY surges to the highest level since late Jan.

The EUR/JPY cross was seen building on previous session's strong gains and extended the up-move further beyond the 122.00 handle to hit fresh 5-week tops.

Currently trading around mid-122.00s, a follow through buying interest around the shared currency on slightly hawkish comments from the ECB President Mario Draghi has been supportive of the strong bid tone surrounding the cross. In the post-ECB meeting press conference Draghi signaled no ‘urgency’ to roll out additional stimulus and triggered a sharp short-covering rally around the Euro pairs.

Meanwhile, persistent weakness around the Japanese Yen, amid a fresh wave of risk-on trade on Friday, further collaborated to the pair's up-surge to the highest level since early Feb. An unexpected drop in the Japanese Business Sentiment Index, falling to 1.1 for the first-quarter of 2017 from 7.5 in the previous quarter, was also seen weighing on the Japanese Yen. 

Market attention on Friday would remain glued to the keenly watched US monthly jobs report (NFP), which is traditionally known to infuse volatility across global financial markets. Broader market risk sentiment would eventually derive the Japanese Yen's safe-haven demand and provide some fresh impetus for the cross during early NA session.

Technical levels to watch

The ongoing momentum seems strong enough to lift the cross further towards the 123.00 handle, above which the trajectory could further get extended towards 123.30-35 resistance area ahead of 123.70 level.

On the downside, the 122.00 handle now becomes immediate support to defend, which if broken might trigger a corrective slide towards 121.00 round figure mark with some intermediate support near 121.30-25 zone.