EUR/JPY offered above 5-DMA, dips to 113 handle

The EUR/JPY cross is currently struggling hard to extend the recovery beyond 113 handle, as the yen bulls fight for control, despite weaker Japanese GDP print.

EUR/JPY flirts with 113 handle

The EUR/JPY pair now trades +0.04% higher at 113.03, having found strong support near 113.95 region. The EUR/JPY cross is seen bidding up for further gains above 113 handle, taking on the recovery from Friday’s low struck at 112.75 levels, following US macro releases.

At present, the cross wavers around 113 handle as both the EUR/USD as well as USD/JPY pair trade lacklustre in a tight range, in search of a fresh direction from a host of important economic reports due in the week ahead.

While today’s big miss on the Japanese GDP figures had limited impact on the Japanese yen, as focus now shifts towards the US datasets due later in the NA session.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 113.18/22 (5-DMA/ daily high) and from there to 113.70 (9 & 11 Aug high). On the flip side, support is seen at 112.79/64 (daily S2 & S3) below which it could extend losses to towards 112.28 (Aug 5 low).