EUR/JPY is struggling to keep daily gains around the 127.50 area on Monday, against the back drop of increasing selling pressure in both EUR and JPY. EUR/JPY lower on Draghi, risk-on trade A fresh wave of risk appetite is hurting both safe haven and funding currencies at the beginning of the week, although the cross has managed well to keep the sideline pattern around the 127.40 area so far. Renewed market chatter of further BoJ easing are hurting JPY since today’s disappointing Q4 GDP in the Asian economy, while President Draghi has delivered some dovish comments at his speech before the European Parliament, all against the backdrop of quite a strong rebound of the risk-on trade. EUR/JPY relevant levels At the moment the cross is retreating 0.01% at 127.51 facing the next support at 126.37 (low Feb.12) followed by 125.77 (low Feb.11) and then 124.96 (monthly low Jun.2013). On the flip side, a break above 129.49 (20-day sma) would open the door to 129.87 (55-day sma) and finally 130.93 (100-day sma). For more information, read our latest forex news.