EUR/JPY regains poise, heads back towards 114

The EUR/JPY cross is seen extending the gains seen in the late-Asian session, now looking to test 114 handle once again amid broad based US dollar strength.

EUR/JPY finds support near 113.50

The EUR/JPY pair now rises +0.25% to fresh session highs of 113.81, having found strong bids at 113.63. The EUR/JPY cross witnessed wild moves so far this Monday, with the bears having failed to close out the opening bullish gap, as the cross rebounded towards daily highs reached at 114 handle.

The cross finds support from broad yen weakness, as BOJ Governor Kuroda’s dovish comments continue to weigh on the Japanese currency. The BOJ may add more monetary stimulus to the economy, if necessary, at its next policy meeting in September when it releases the results of its review of more than three years of aggressive easing, Governor Kuroda was quoted as saying.

Focus shifts towards the European open for further incentives on the cross amid a fairly light economic calendar for today.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 114 (daily high/ round number) and from there to 114.82 (Aug 2 high). On the flip side, support is seen at 113.49/35 (5 & 10-DMA) below which it could extend losses to towards 113.00.