EUR/JPY: Bulls remain in control, eye 137 handle

FXStreet (Mumbai) - The shared currency trades muted against its Japanese rival in the early Asian morning, keeping EUR/JPY on the upper band of the 136 handle, as the euro remains supported on dollar longs squeeze and also on upbeat German data while the yen too finds support on China stock markets rout ahead of key US consumer confidence data due later tonight.

EUR/JPY supported above 5-DMA

Currently, the EUR/JPY pair trades dead flat at 136.66, failing to cling to 137 handle in overnight trades. The cross rallied to fresh 2-week highs, although was unable to sustain at higher levels as divergent monetary policies outlook between the US and Europe dragged the shared currency lower.

While the US dollar ignored the above estimates US durable goods data releases, lying at two-week lows against the yen, which also kept the gains in EUR/JPY checked.

Markets now shift their attention towards US consumer confidence data due to be released in the New York as the EUR calendar remains absolutely data-dry on Tuesday.

EUR/JPY Technical Levels

To the upside, the next resistance is located at 137.10 (July 27 High) levels and above which it could extend gains 137.24 (50-DMA) levels. To the downside immediate support might be located at 136.26 (5-DMA) below that at 135.71 (200-DMA) levels.