Having faced rejection just below 114.00 handle, the EUR/JPY cross witnessed a sharp reversal and tumbled below 113.00 handle, erasing all of yesterday's recovery gains.
Currently trading near session low around 112.85 region band, the cross came under intense selling pressure and dropped to session low level of 112.60 amid prevalent risk-off sentiment that is driving safe-haven flows towards the Japanese Yen.
Deutsche Bank uncertainty has gripped European market again, with most major indices posting losses of anywhere between 1.5-2.0% and is weighing heavily on the shared currency.
Meanwhile, disappointing release of German monthly retail sales data added on to the offered tone around the shared currency.
Focus now shifts to the preliminary release of key Euro-zone CPI print, which is expected to have ticked higher during the month of September.
Technical levels to watch
A follow through weakness below 112.50-40 immediate support is likely to drag the pair immediately towards 112.25 horizontal support before the pair eventually breaks below 112.00 handle and turn vulnerable to continue drifting lower in the near-term.
On the upside, any recovery attempts above 113.00 handle now seems to confront resistance near 113.40 area above which the pair is likely to make a fresh attempt towards reclaiming 114.00 round figure mark.
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