EUR/JPY: Upside lacks momentum, capped below 111.40

The EUR/JPY cross fails to sustain at higher levels and drifts slightly lower, as the JPY bulls are seen fighting for control amid headlines crossing the wires from Japan, in wake of PM Abe’s victory at the Upper House elections held on Sunday.

EUR/JPY regains daily pivot at 111.23

The EUR/JPY pair trades 0.15% higher at 111.26, moving away slightly from session lows struck at 111.14 in the last hour. The EUR/JPY cross is attempting a minor-recovery on 111 handle, although the upside lacks momentum as the yen remains underpinned amid a couple of JP headlines, which indicate that the Japanese government is making efforts towards stabilizing the economy.

Meanwhile, a muted EUR/USD pair around 1.1050 levels, fails to provide any impetus to the EUR/JPY cross, as the moves are mainly driven by the prevalent risk-on trades across the financial markets. Later today, the US LMCI data may provide fresh momentum to the US dollar, especially after the robust US NFP data released last Friday.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 111.38/52 (Daily high/ 5-DMA) and from there to 111.87 (Jul 8 high). On the flip side, support is seen at 111.14 (Daily low) below which it could extend losses to towards 110.83 (Jul 6 low).