EUR/JPY offered above 5-DMA, targets 113 handle

The EUR/JPY cross keeps the red and now heads for a test of 113 handle, as the euro witnessed fresh selling across board, after the German GDP second reading confirmed slowdown.

EUR/JPY awaits US housing data

The EUR/JPY pair now trades modestly flat at fresh session lows of 113.25, having failed to chew strong offers near 113.50 levels. The EUR/JPY cross moves further south, extending its retreat from near 113.60 region, as softer German growth numbers accentuated the downside in the EUR/USD pair. The German economy grew 0.4% during the second quarter of 2016, confirming the preliminary estimate published by Destatis earlier this August.

While on the JPY-side of the story, persistent broad based US dollar advance keeps the dollar-yen pair buoyed, despite lower oil prices, as investors look forward to the Fed Symposium and Yellen’s speech for fresh updates.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 114 (round number) and from there to 114.82 (Aug 2 high). On the flip side, support is seen at 113.07 (daily S1) below which it could extend losses to towards 112.59 (Aug 18 low).