EUR/JPY rejected near 117.00 in Asia

The overnight recovery in EUR/JPY cross faltered just shy of 117 barrier, sending the rate sharply lower towards the mid-point of 116 handle.

EUR/JPY eyes Fed, BOJ

The EUR/JPY pair trades +0.13% higher at 116.63, heading for a test of daily lows reached at 116.41. The EUR/JPY cross failed to surpass 117 barrier and turned lower this session as the yen regained footing across the board, despite more BOJ easing hopes, amid upbeat Japanese trade data and deteriorating risk sentiment. A sudden turnaround in risk conditions over the last couple of hours, lifted the safe-haven bids for the yen and triggered a fresh selling-wave across the yen crosses.

While a stalled recovery in the EUR/USD pair, also weighed somewhat on the cross and thus, collaborated to a minor-reversal in EUR/JPY. Amid a data-quiet trading session today, focus shifts towards the key central banks’ event, including the Fed and BOJ monetary policy decisions.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 117 (key resistance) and from there to 117.31 (50-DMA). On the flip side, support is seen at 116.16/11 (Jul 22 & 21 low) below which it could extend losses to towards 115.04 (20-DMA).