EUR/JPY tracks USD/JPY-recovery, targets 116.00

The cross in the EUR/JPY found fresh bids just below 5-DMA, sending the rate back towards 116 handle, as the US dollar regains poise against its Japanese rival.

EUR/JPY risk-on back in vogue?

The EUR/JPY pair drops -0.28% to 115.60, striving hard to regain 116 handle. The cross trims losses, largely on the back of fresh signs of recovery seen in USD/JPY, while it nears 104 handle just ahead of the European opening bells.

While the EUR/USD pair meanders near two-month troughs just ahead of 1.11 handle, despite upbeat German industrial production data. Thus, offering little support to the EUR/JPY recovery. Next of note for the spot remains the US labor market report due later on the day for further moves in both the EUR and JPY.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 116.30 (five-week highs) and from there to 116.50 (psychological levels) and 117 (round figure) next. On the flip side, next supports are seen at 115.33 (5-DMA) and 115 (round number) below which it could extend losses to towards 114.65 (100-DMA).