EUR/JPY recovers to 113.00 handle but remains capped at 10-DMA

Following a tepid rebound from Wednesday's session low, the EUR/JPY cross resumed its downward trajectory but has managed to hold weekly lows and rebound back to currently trading around 113.00 region.

A broader recovery in the greenback is weighing on the shared currency, while the Japanese Yen maintained its bid tone amid cautious sentiment around equity markets and is dragging the EUR/JPY cross lower.

Despite of its recent slide, the cross has failed to register any meaningful recovery and remained capped by 10-day SMA, clearly suggesting that the ongoing weakening trend is likely to continue in the near-term. The near-term bearish bias is likely to get confirmed once the pair decisively breaks below 112.50 immediate support.

Technical levels to watch

On a sustained break below 112.50 support, the cross seems to immediately head towards breaking through 112.00 round figure mark and test 111.50-40 support area. On the flip side, 113.00-113.20 (10-day SMA region) remains immediate hurdle, which if cleared should assist the pair to stage some additional recovery towards 114.25-30 strong resistance area. Only a sustained move above 114.25-30 strong resistance would negate the near-term bearish bias and pave way for continuation of the pair's near-term recovery trend.