EUR/JPY eyeing a break above 114.50

The EUR/JPY cross is seen oscillating back and forth in a narrow range as we progress towards the European open, undermined by a weaker EUR/USD.

EUR/JPY unperturbed by BOJ’s Harada, Fed minutes eyed

The EUR/JPY pair trades modestly flat at 114.44, having bounced-off solid support near 114.20 region. The cross attempts a minor-recovery this session, mainly driven by fresh buying seen in USD/JPY, as yen markets digest dovish comments from BOJ’s Kuroda and Harada delivered earlier on the day.

However, the recovery appears to lack follow-through as ongoing weakness surrounding EUR/USD, keeps the bearish pressure intact on the EUR/JPY cross. In absence of significant economic releases from the US docket today, the cross will remain at the mercy of the USD dynamics ahead of the Fed speaks and FOMC minutes.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 114.98 (5-DMA) and from there to 115.50 (daily R2) and 116.31 (five-week highs) next. On the flip side, next supports are seen at 114.27 (50-DMA) and 114.06 (20-DMA) below which it could extend losses to towards 113.65 (daily S1).