EUR/JPY remains well offered below 115.00 mark

The EUR/JPY cross remained well offered below 115.00 psychological mark and has failed to register any meaningful recovery from session low to currently trade around 114.70-80 band.

Since early Asian trading session on Tuesday, the Japanese currency maintained its strong bid tone on news that the much anticipated Japanese stimulus package could turn out to be much lower than what market participants have been anticipating. 

Adding to this, cautious equity markets provided the additional boost to the safe-haven appeal of the Japanese currency and exerted further selling pressure on the EUR/JPY cross. 

Moreover, the shared currency has failed to gain any respite ahead of this week's important macro releases from the Euro-zone, which includes - early estimate of CPI for July and flash version of second quarter GDP print. 

However, this week's key highlight for the EUR/JPY traders would be BOJ monetary policy decision, which if disappoints would open room for continuation of the pair's near-term downward trajectory.

Technical levels to watch

Bulls would be disheartened if the pair fails to hold its immediate support near 114.50 region, which if broken would open door for extension of the pair's downward trajectory towards its next major support near 112.50-40 region with some intermediate support around 113.70-60 area. 

On the flip side, any recovery attempt above 115.00 psychological mark now seems to face resistance around 115.75-80 region, above which the pair is likely to extend the recovery trend towards its next major resistance near 116.80-85 region. A follow through buying interest above 116.80-85 strong resistance now seems to provide the required momentum that could assist the pair towards 50-day SMA resistance near 118.00 region.