EUR/JPY bounces-off 115.00, eyes post-ECB highs

EUR/JPY’s recovery from 115 handle faces stiff resistance at 10-DMA, sending the cross the slightly lower ahead of the European open.

EUR/JPY capped by 10-DMA at 115.28

The EUR/JPY pair drops -0.16% to 115.20, having reversed dip to 115.02 lows. The EUR/JPY cross attempts a tepid-bounce on 115 handle, largely underpinned by fresh EUR buying amid widespread risk-aversion, which backs the funding currency status of the euro. While dismal German trade figures released last hour were ignored by the bulls.

The cross also finds support from ongoing recovery attempts witnessed in the USD/JPY pair, as North Korea nuclear tests news continue to weigh on the markets. Next of note for the major remains the Fed speak scheduled later in US session.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 115.44 (post-ECB highs) and from there to 116 (round number). On the flip side, support is seen at 115.02 (daily low) below which it could extend losses to towards 114.63/45 (50 & 20-DMA).