EUR/JPY remains offered below 113.00

After bottoming out in the 112.40 area, EUR/JPY has recovered some pips and is now navigating the 112.80 region.

EUR/JPY lower on JPY buying

The cross remains on the defensive in response to an abrupt pick up in the demand for the safe haven JPY via a much weaker USD/JPY, all against the backdrop of a deep retracement of the greenback across the board.

In the data space, German/EMU Economic Sentiment has come in on the strong side for the current month, giving extra support to EUR-bulls ahead of key US inflation figures due later.

EUR/JPY relevant levels

At the moment the cross is losing 0.44% at 112.75 facing the immediate support at 112.28 (low Aug.5) followed by 110.54 (low Jul.8) and then 109.47 (post-Brexit low Jun.24). On the upside, a breakout of 113.98 (50% Fibo of 109.47-118.49) would aim for 114.40 (20-day sma) and finally 116.10 (high Jul.27).