EUR/JPY holds above 20-DMA on German data

The EUR/JPY cross stages a minor-rebound on Friday, reversing a part of yesterday’s losses, as the yen corrects lower across the board after the recent strength.

EUR/JPY faces stiff resistance around 113.85 region

The EUR/JPY pair now rises +0.16% to 113.59, easing-off session tops posted at 113.88 in Asia. The EUR/JPY cross came under renewed selling pressure as the yen tries to regain ground somewhat against the greenback, as markets turn cautious ahead of the European open.

Meanwhile, the cross failed to react to the negative German PPI data released last minutes, with the EUR/USD pair continues to trade around 1.1340 levels. Germany's producer price index (PPI) dropped 2% y/y in July, compared to the 2.2% decline booked in June. Markets had expected a dip to 2.1% in July.

Markets look forward to the European session for fresh incentives amid a data-quiet macro calendar on Friday.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 113.91/114 (daily R1/ round number) and from there to 114.82 (Aug 2 high). On the flip side, support is seen at 113.31/27 (5 & 10-DMA) below which it could extend losses to towards 113.00.