EUR/JPY holding on to its gains, upside seems capped at 117.00

After a weekly gap-up and a subsequent up-tick to 117.00 handle, the EUR/JPY cross trimmed some of its gains but has held on to its early strength and is currently trading around 116.50-60 band.

Earlier during Asian trading session, easing worries over an attempted military coup in Turkey over the weekend dented the safe-haven demand for the Japanese currency and assisted the pair to recover some of its Friday's lost ground. 

On the back of a quiet economic docket on Monday, the pair would continue to be driven by the prevalent risk sentiment. However, traders are likely to await for this week's ECB meeting and subsequent press conference by the ECB President Mario Draghi before jumping taking big bets over the pair's near-term direction. 

In the meantime, expectations of additional fiscal stimulus by the Japanese government might continue to keep Yen suppressed and thus limit any immediate sharp slide for the EUR/JPY cross.

Technical levels to watch

On the immediate downside, 116.00-115.80 area seems to act as immediate support, which if broken should drag the pair back towards 115.00 psychological mark ahead of an important resistance turned support near 114.50 region.

Meanwhile on the upside, momentum above 117.00 round figure mark could get extended beyond 118.00 handle, back towards a three-week highs resistance near 118.40, which could further get extended towards 50-day SMA resistance near 119.00 region.