EUR/JPY rebounds towards 112.50 on JP extra stimulus news

The EUR/JPY recovery found extra legs after the yen slumped on the Japanese PM Abe’s confirmation that the economic stimulus package will be complied tomorrow.

EUR/JPY rallies more-than 1 big figure intraday

The EUR/JPY pair jumps +1.22% to fresh two-day highs of 112.44, staging a solid recovery from 111.14 - daily lows. The EUR/JPY cross sees nearly 130-pips rally in the early European trading, largely in response to the news of Japan’s PM Abe confirming additional economic stimulus, which send the yen sharply lower across the board.

Meanwhile, fresh selling seen in the EUR/USD pair fails to sway the bullish pressure on the EUR/JPY cross. In the day ahead, the cross will remain supported amid a data-light trading calendar today, as traders will continue to digest the latest headlines from Japan.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 112.64 (Jul 7 high) and from there to 112.84 (10-DMA). On the flip side, support is seen at 111.68 (5-DMA) below which it could extend losses to towards 111.14 (Daily low).