EUR/JPY gains momentum after being rejected from below 130.00

• Euro among best performers supported by ECB hike talk. 
• EUR/JPY kept gains despite risk aversion. 

The EUR/JPY pair rebound from 2-week lows rising almost 150 pips from the lows. The euro bottomed at 129.58 and reversed sharply. It was rejected from under 130.00, erasing Friday’s losses. 

A report from Reuters signaled that ECB members considered likely that the QE program could end in 2018 and also they seem comfortable with market estimations of a rate hike by the second quarter of 2019.

Risk aversion during the US session did not limit the upside in the pair. The Japanese currency rose modestly despite the decline of 400 points of the DOW JONES. 

Near the end of the day, EUR/JPY was testing daily highs, near 131.00, headed toward, a positive close that could signal that a short-term bottom is in place. 

EUR/JPY Technical levels 

To the downside, support levels are seen at 130.45/50, 130.05/10 (Mar 16 low) and 129.80. On the upside, immediate resistance is located at 131.00 followed by 131.25, 131.45 and 131.70.