EUR/JPY: Bears loosen grip, re-takes 114.00

The offered behind the JPY weakened a bit in the mid-European session, allowing a minor-recovery in EUR/JPY towards 114 handle.

EUR/JPY awaits US data

The EUR/JPY pair now trades -0.36% lower at 113.91, extending recovery from session troughs reached at 113.64 shortly after European open. The EUR/JPY cross is  seen making minor-recovery attempts this session, as the JPY bulls take a breather from the latest upsurge, backed by investors expressing huge disappointment after the Japanese government finally confirmed JPY 28 trln economic stimulus package.

While further recovery in EUR/JPY appears limited as the EUR/USD pair moved-off multi-week highs and now trades below 1.1200 barrier. Next in focus remains the US datasets, which will provide fresh incentives on the USD, eventually impacting both the EUR and JPY.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 114.63/65 (5-DMA/ daily R1) and from there to 115.20 (daily R2). On the flip side, support is seen at 113.64 (Daily low) below which it could extend losses to towards 113.24 (Jul 12 low).