EUR/JPY back below 113 handle as Yen picks-up strength

The EUR/JPY cross is seen making minor-recovery attempts from lows, although remains capped below 113 handle, as the yen remains strongly bid across the fx board amid risk-averse market conditions.

EUR/JPY: Daily S1 tested

The EUR/JPY pair now drops -0.32% to 112.89, having posted session lows at 102.80 last hour. The EUR/JPY cross keeps losses, largely driven by a steep drop in the USD/JPY pair, as the demand for safe-havens such as the JPY remains in vogue amid risk-off market profile.

A cautious tone seen around the Asian markets along with lower commodities’ prices weighs on the appetite for risk assets and thus, lifts the bids for safety assets such as gold and yen.

Next of note for the cross remains the US economic releases due later in the NA session, which will have major impact on both the EUR as well as the JPY.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 113.16/20 (5 & 10-DMA) and from there to 113.70 (9 & 11 Aug high). On the flip side, support is seen at 112.81/80 (daily S1 & low) below which it could extend losses to towards 112.28 (Aug 5 low).