50-DMA Holds Firm, Draghi Agrees To Form New Cabinet

EUR/JPY slipped into the WMR fix on Wednesday but recouped the bulk of earlier losses in NY hours, wrapping up just shy of neutral levels. The rate briefly showed under its 50-DMA, but failed to establish itself below that moving average.

• Former ECB chief Mario Draghi accepted the mission of forming Italy's next government and will hold consultations with party leaders in a bid to put together a broad parliamentary majority.
• The EU & UK engaged with Northern Ireland's First Min & Dep First Min to resolve tensions over recent rhetoric/actions surrounding the Northern Ireland Protocol.
• The rate last trades at Y126.44, little changed on the day, with downside focus still on the 50-DMA, intersecting at Y126.24. A move through that level would bring Jan 27 low of Y125.60 into play. Meanwhile, a jump above Jan 29 high of Y127.34 would draw attention to Y127.49/50, which represent Jan 7/Mar 1, 2019 highs.
• EZ retail sales, German Markit Construction PMI, ECB Economic Bulletin & comments from ECB's de Cos are due later today.