EUR/JPY fades a spike to 113.10, Fed speaks, Draghi eyed

A renewed rally seen in the EUR/JPY cross appears to fizzle, as the EUR/USD pair recedes gains spurred by fresh reports of Deutsche bank rescue plans.

EUR/JPY rejected near 5-DMA at 113.06

The EUR/JPY pair rises +0.28% to 112.95, having quickly reversed a spike to session highs of 113.10. EUR/JPY failed to resist above 113 handle as the EUR bears fought back control after Germany's Federal Financial Supervisory Authority (BaFin) dismissed latest reports that the government and financial authorities are preparing a rescue plan for the troubled Deutsche bank.

However, the retreat from above 113 handle remains capped on the back of fresh buying seen around USD/JPY, as risk appetite improves in wake of rallying European stocks and higher oil prices. All eyes now remain on a string of Fed speaks and ECB Draghi’s speech due later today for further momentum on the cross.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 113.50 (psychological levels) and from there to 113.88 (50-DMA) and 114.00 (20-DMA) next. On the flip side, next supports are seen at 112.64 (1h 200-SMA) and 112.50 (psychological levels) below which it could extend losses to towards 112.02 (post-FOMC low).