EUR/JPY off-lows, re-takes 112 handle

The sudden selling-wave seen behind EUR/JPY stalled ahead of the mid-point of 111 handle, with the bears allowing a tepid-bounce back towards 112 barrier, despite deteriorating risk sentiment.

EUR/JPY trades below all major DMAs

The EUR/JPY pair trades -0.45% lower at 111.96, moving away from session lows reached at 111.59 in the last hour. The EUR/JPY cross trims losses, although remains deep in the red and faces double whammy from a weaker EUR/USD on one side, while returning demand for the safe-haven yen also weighs on the other.

The persisting risk conditions deteriorated after the black gold stalled its rebound alongside the Asian equities, also added to the downbeat sentiment around the cross. Next of note for the pair remains the German industrial production data ahead of the ECB monetary policy accounts due later in the European session. While the US jobs data will be closely eyed for further momentum.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 112.31 (Daily high) and from there to 112.95/113.05 (daily R1/ 5-DMA). On the flip side, support is seen at 111.18 (Daily S1) below which it could extend losses to towards 110.83 (Jul 6 low).