EUR/JPY off-highs, slips below 113.50

A renewed risk-on wave gripped markets, but failed to keep the recovery mode intact in the EUR/JPY cross, dragging the pair back below the mid-point of 113 handle.

EUR/JPY back above 5-DMA at 113.23

The EUR/JPY pair trades -0.24% lower at 113.48, retreating from fresh session highs of 113.62. The EUR/JPY cross keeps the bearish pressure intact, and now moves further away from session tops as the bulls fail to benefit from persisting risk-on trades, re-ignited by extended rebound in the European equities.

The main catalyst behind the latest leg lower in the cross seems to be the retreat in EUR/USD from 1.11 handle, while the recovery in the USD/JPY pair helps cushion further downside.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 113.85 (Daily high) and from there to 114 (round number). On the flip side, support is seen at 112.50 (Daily S1) below which it could extend losses to towards 111.93 (Jun 28 low).