EUR/JPY recovery remains capped below 5-DMA

The EUR/JPY cross makes minor-recovery attempts from a sharp dip to 112.80 levels, now wavering around 113 handle as  the bulls face stiff resistance just below 5-DMA located at 113.19.

EUR/JPY drops for 2nd straight session

The EUR/JPY pair now trades -0.21% lower at 113.02, having managed to regain 113 handle. The EUR/JPY cross is struggling hard to take on the recovery further beyond 113 barrier as the gains in the yen across the board continue to outweigh the EUR/USD strength.

Amid broad based USD selling, both the EUR and JPY continue to benefit. However, the cross remains submerged into losses on the back of higher demand for the Japanese currency as markets remain risk-averse amid falling oil prices and negative equities.

Meanwhile, markets now await the US economic release for fresh take on the cross, as the EUR calendar remains fairly light today.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 113.33 (10-DMA/ daily pivot) and from there to 114 (psychological levels). On the flip side, support is seen at 112.80 (daily low) below which it could extend losses to towards 112.28 (3-week lows).