EUR/JPY plummets to 1-week lows, below 125.00 handle post-Draghi

   •  Draghi's dovish sounding comments prompt some aggressive selling.
   •  A goodish pickup in the JPY demand adds to the intraday downfall.

The EUR/JPY cross extended its sharp intraday retracement slide and tumbled to one-week lows, below the key 125.00 psychological mark post-Draghi.

The cross failed to capitalize on its early uptick to 125.25 area, rather met with some aggressive supply and turned lower for the second straight session after dovish sounding comments by the ECB President Mario Draghi. 

Speaking at the post-meeting press conference, Draghi said that geopolitical uncertainties continued to hit the Euro-zone economy and that headline inflation is likely to decline over coming months.

Draghi further dismissed any impression that we would tolerate too low inflation and showed readiness to adjust all instruments as necessary and reiterated to hold interest rates steady until at least the end of 2019. 

This coupled with a goodish pickup in the Japanese Yen, despite the prevalent positive mood around equity markets, further collaborated to the pair's heavily offered tone through the early North-American session.

It would now be interesting to see if the cross is able to find any buying interest at lower levels or the current pullback marks the end of the recent corrective bounce/resumption of the prior well-established bearish trend.

Technical levels to watch