EUR/JPY dips below on caution ahead of China data and Suga’s comments

The bid tone around JPY picked up pace in Asia on caution ahead of China data and Suga’s comments, pushing the EUR/JPY cross to a session low of 114.92 levels. 

Trades above 115.00

At the time of writing, the cross was trading around 115.25 levels. The Japanese Yen strengthened in Asia following sharp declines in the previous two trading sessions after Japanese chief cabinet secretary Suga came out on the wires, denying the chatter that the government may be considering helicopter money to revive its economy.

Meanwhile, delay in the release of the monthly China trade data and re-emerging concerns over South China Sea dispute added to the bid tone around Yen.

EUR/JPY Technical Levels

The immediate resistance is seen at 115.50 (June 16 low), above which the cross could target 116.00 (zero figure). A violation there would expose 117.35 (June 20 low). On the other hand, a breakdown of support at 114.79 (June 30 high) would open doors for a drop to 114.00. A cut through the same could yield 113.44 (5-DMA).