EUR/JPY runs into offers once again near 115.50

The EUR/JPY cross bounced-off a dip to 115 handle and swung back higher to test 115.50 levels, before meeting fresh supply near the last to now trade around 20-pips lower.

EUR/JPY risk-off back in vogue?

The EUR/JPY pair trades modestly flat at 115.30, unable to sustain at higher levels. The cross shaved-off gains and now trades muted as risk-aversion appears to have gripped the markets once again after the Deutsche bank woes resurfaced, which weighed negatively on the euro.

The USD/JPY pair also halted its upbeat momentum, as the yen is seen recovering ground somewhat amid deteriorating market sentiment. Meanwhile, both the upbeat German trade data and Eurozone’s Sentix investor confidence print failed to lift the sentiment around the EUR/JPY cross.

Looking ahead, the cross will continue to get influenced by the persisting RO-RO trends amid holiday-thinned trading.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 115.55 (5-DMA) and from there to 115.82 (daily R2) and 116.31 (five-week highs) next. On the flip side, next supports are seen at 115.07 (daily low) and 114.84 (10-DMA) below which it could extend losses to towards 114.57 (100-DMA).