EUR/JPY clings to gains to 117.00 neighborhood after EU data

After an initial drop to 116.00 neighborhood, the EUR/JPY cross regained its lost ground and is now building on its near-term bullish momentum.

Currently trading around 116.80-85 band, the cross maintained its bid tone following the release of better-than-expected German ZEW economic sentiment that surpassed even the most optimistic estimates. German ZEW economic sentiment for current month jumped to 13.8 versus 8.1 expected and previous month's 6.2. Moreover, the release of in-line with expected composite Euro-zone GDP print further supported the bid tone surrounding the cross. 

Earlier on Tuesday, risk-off mood was seen boosting the Japanese Yen's safe-haven appeal and dragged the cross to session low. However, positive sentiment around European equity markets is indicative of improving inventor risk appetite and providing additional support to the cross. 

Technical levels to watch

From current levels 117.00 round figure mark is likely to act as immediate resistance above which the cross is likely to aim towards 117.65-70 horizontal resistance ahead of 118.00 handle. On the downside, weakness below 116.40-35 immediate support seems to drag the pair back towards session low support near 116.00 handle before the cross eventually drops to 115.60-55 support area.