EUR/JPY clings to EU CPI-led gains to 117.00 mark

Having posted a session low at 116.25, the EUR/JPY cross recovered lost ground and touched a fresh session peak level of 117.15 after the final Euro-zone CPI print.

Currently hovering around 117.00 mark, the pair's recovery from session through gained momentum after the final Euro-zone consumer inflation, as measured by CPI, matched expectations and came-in at 0.5% y-o-y. Meanwhile, at 0.2% monthly CPI print fell short of consensus anticipating a reading of 0.3% as compared to 0.4% reported previously. Despite of the mixed reading, the cross gained traction and confirmed near-term recovery trend. 

However, the prevalent cautious sentiment surrounding European equity markets extended some support to the Japanese Yen's safe-haven appeal and restricted further upside for the cross.

Moving ahead, US macro releases and Fed Chair Janet Yellen's testimony, along with broader market risk sentiment would derive the safe-haven demand and provide fresh impetus for the cross during NY trading session.

Technical levels to watch

A follow through buying interest above 117.20 immediate resistance is likely to lift the cross immediately to 117.50 region (yesterday's multi-month high) before making an attempt to conquer 118.00 handle. On the downside, 116.55-50 area now becomes immediate support, which if broken could drag the cross through session low support near 116.25 towards its next major support near 115.75-70 area.

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