EUR/JPY looking to regain 118 handle as Nikkei recovers

The persisting risk-off moods appear to have eased a bit in the late-Asian trades, allowing a minor-recovery in EUR/JPY towards 5-DMA at 117.85.

EUR/JPY making higher bottoms on daily sticks

The EUR/JPY pair recovers losses and trades around 117.80 levels, trying hard to regain 118 handle. The bulls are rescued by recovering risk sentiment backed by Nikkei paring losses and rising oil prices, which weighs on the safe-haven yen.

While on the EUR side of the equation, the main currency pair accelerates to the upside amid broad based US dollar weakness and therefore, aids the recovery in EUR/JPY. In the day ahead, all eyes will remain on the Brexit-related news flow amid a data-light EUR calendar, while Yellen’s testimony and the US existing home sales data will be watched in the American session.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 117.94/118.06 (daily pivot/ 1h 50-SMA) and from there to 118.42/50 (10-DMA/ psychological levels). On the flip side, support is seen at 117.50 below which it could extend losses to towards 117.33 (Jun 20 Low).