EUR/JPY rebound from 200-DMA gains momentum ahead of German CPI

The EUR/JPY cross caught fresh bids on Tuesday and rebounded sharply from the very important 200-day SMA resistance break-point, now turned immediate support.

Currently trading at fresh session peak, around 119.40 level, an offered tone around the Japanese Yen is contributing to the strong bid tone surrounding the cross, which otherwise could have failed to gain any traction amid range-bound EUR/USD price action. The prevalent positive sentiment around European equity market is weighing on traditional safe-haven assets, including the Japanese Yen, and is also supportive of the pair's up-move on Tuesday. 

Traders on Tuesday will remain focused on the preliminary German CPI print for the month of November, while the broader risk sentiment would continue to derive Yen's safe-haven demand and provide further impetus for the EUR/JPY cross. 

Technical levels to watch

From current levels, 119.70-75 area is likely to act as immediate hurdle above which the cross seems all set to surpass 120.00 psychological mark and aim towards 120.94 resistance level (June 23 high). On the flip side, weakness back below 119.00 handle could drag the cross back towards 200-day SMA support near 118.55-50 region, which if broken decisively might extend the corrective slide towards 117.70-60 horizontal support with 118.00 round figure mark acting as intermediate support.