EUR/JPY turns positive around 113.30

The now softer tone around the Japanese Yen is allowing EUR/JPY to return to the positive territory on Wednesday, bouncing off early lows insub-113.00 levesl.

EUR/JPY bid on JPY-selling

The cross is recovering part of the downside seen during the first half of the week despite it keeps meandering the area of 3-week lows around the 113.00 handle, while the buying pressure around the safe haven JPY seems to have ebbed somewhat.

Data wise in Euroland, final Services PMIs for the month of July have come in mixed, showing German and Spanish readings below estimates. Nothing relevant expected in the Japanese docket following last Friday’s BoJ meeting, while scepticism poised to linger after the recently announced stimulus measures by the Japanese Government.

EUR/JPY relevant levels

At the moment the cross is up 0.03% at 113.25 facing the immediate hurdle at 113.98 (50% Fibo of 109.47-118.49) ahead of 115.27 (20-day sma) and finally 117.17 (high Jul.27). On the other hand, a breach of 112.92 (61.8% Fibo of 109.47-118.49) would expose 110.54 (low Jul.8) and then 109.47 (post-Brexit low Jun.24).