EUR/JPY sold-off once again at 113 on ZEW

The EUR/JPY cross stalled its recovery right at 113 barrier and came under fresh selling pressure following the release of below estimates German ZEW economic sentiment.

EUR/JPY awaits US CPI

The EUR/JPY pair now drops -0.32% to 112.89, unable to sustain the recovery above 113 handle. The EUR/JPY cross remains deep in the red, mainly driven by heavy losses seen in the USD/JPY pair, as the yen remains strongly bid on persistent risk-off trades.

While the latest move lower in the cross is largely attributed to worse-than expected German economic sentiment numbers, which failed to impress the EUR markets. Attention now turns towards the US calendar, with plenty of risk events on the cards, including the US Inflation report.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 113.16/19 (5 & 10-DMA) and from there to 113.70 (9 & 11 Aug high). On the flip side, support is seen at 112.38/28 (daily & Aug 5 low) below which it could extend losses to towards 112 (round number).