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EUR/JPY remains offered below 113.00

After bottoming out in the 112.40 area, EUR/JPY has recovered some pips and is now navigating the 112.80 region.

EUR/JPY lower on JPY buying

The cross remains on the defensive in response to an abrupt pick up in the demand for the safe haven JPY via a much weaker USD/JPY, all against the backdrop of a deep retracement of the greenback across the board.

In the data space, German/EMU Economic Sentiment has come in on the strong side for the current month, giving extra support to EUR-bulls ahead of key US inflation figures due later.

EUR/JPY relevant levels

At the moment the cross is losing 0.44% at 112.75 facing the immediate support at 112.28 (low Aug.5) followed by 110.54 (low Jul.8) and then 109.47 (post-Brexit low Jun.24). On the upside, a breakout of 113.98 (50% Fibo of 109.47-118.49) would aim for 114.40 (20-day sma) and finally 116.10 (high Jul.27).

Canada: Manufacturing sales expected to post a 1.0% m/m gain in June – RBC CM

Research Team at RBC Capital Markets, are forecasting a 1.0% m/m gain in Canada’s nominal manufacturing sales in June, following a sizeable 1.0% m/m d
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AUD: Further gains would make another cut in Q4 more likely - BBH

Research Team at BBH, notes that the RBA minutes were released overnight and at that meeting, the RBA cut rates 25 bp to 1.5%.   Key Quotes “It note
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