EUR/JPY turns positive near 117.00

The recovery in the EUR/JPY crosses gained traction in the early European trading, with the bulls now testing 117 handle following the release of better-than expected German factory gate prices data.

EUR/JPY regains 5-DMA and beyond

The EUR/JPY pair turns positive and hits fresh session highs at 117.01, staging a solid recovery from the mid-point of 116 handle. The EUR/JPY cross jumps back on the bid and now heads for a retest of daily tops scored previously at 117.09, mainly driven by the ongoing recovery in the USD/JPY pair on 106 handle.

While a muted trading activity around the EUR/USD pair provides little help to the renewed upside in the cross. Data-wise, the German June PPI m/m came in at +0.4% vs +0.2% exp and +0.4% last, while y/y stood at -2.2% vs -2.4% exp vs -2.7% previous.

Next in focus remains the current account data from the Euroland, which will provide fresh impetus on the pair.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 117.79 (50-DMA) and from there to 118 (dairound number). On the flip side, support is seen at 116.76 (5-DMA) below which it could extend losses to towards 116.39 (daily S1).