EUR/JPY: Recovery stalls near 113.50

Dhwani Mehta FXStreet

The cross in the EUR/JPY is seen receding gains as the bulls fail to extend the recovery from a downward spike to 112.50.

EUR/JPY looks for a retest of 113 handle

The EUR/JPY pair rises +0.25% to 113.22, easing-off session highs previously posted at 113.45. EUR/JPY trades on a cautious note and restricts further recovery as the Deutsche Bank saga is expected hog the limelight for the second day today and will continue to weigh on the investors’ sentiments.

The recovery in the cross may be mainly attributed to a solid bounce staged by USD/JPY after risk appetite recovered, as the first US presidential election debate suggested Clinton’s win.

Later today, a fresh batch of US economic data and Fed speaks will be closely eyed for fresh impetus on the US dollar, eventually influencing both the EUR and JPY.

EUR/JPY Levels to consider

The pair has an immediate resistance at 113.50 (psychological levels) and from there to 113.92 (50-DMA) and 114.19 (20-DMA) next. On the flip side, next supports are seen at 113.00 (round figure) and 112.50 (psychological levels) below which it could extend losses to towards 112.02 (post-FOMC low).

1. R3 113.74
2. R2 113.63
3. R1 113.52
PP 113.42
1. S1 113.31
2. S2 113.20
3. S3 113.09

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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