EUR/JPY eases-off 3-week highs as Yen selling stalls

The cross in the EUR/JPY took a breather from the recent upsurge back by relentless selling witnessed in the yen, and now consolidates near 114.50 barrier in early Europe.

EUR/JPY rejected below 100-DMA

The EUR/JPY pair rises +0.36% to 114.36, retreating from three-week highs previously posted at 114.67. EUR/JPY is seen paring gains, although remains strongly bid on the back of improved risk appetite, which drove USD/JPY to fresh two-week highs beyond 102 handle.

Over the last hour, the cross met fresh supply as the yen recovered ground somewhat across the board after the Japanese consumer confidence data outpaced expectations.

While fresh selling witnessed in the EUR/USD pair also collaborated to the latest leg lower in the EUR/JPY cross. Looking ahead, persistent risk sentiment will continue to drive markets amid a lack of fundamental triggers for today.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 114.77 (100-DMA) and from there to 115 (round figure) and 115.47 (Sept 15 high) next. On the flip side, next supports are seen at 113.98 (50-DMA) and 113.77 (20-DMA) below which it could extend losses to towards 113.50 (10-DMA).