EUR/JPY – Stuck at 50-DMA

Offered tone around Yen gathered pace, pushing EUR/JPY higher for fourth consecutive session, although the cross is having a tough time taking out 50-DMA level of 113.95 levels.

Bullish MA crossover

On the daily chart, we see a bullish crossover between 5-DMA and 10-DMA. The cross recovered from the low of 112.60 on Friday after report hit the wires that US Department of Justice (DOJ) trimmed penalty imposed on Deutsche Bank from $14 billion to $5.4 billion.

However, note that neither party has official confirmed the news. Nevertheless, the risk-on moves is helping EUR/JPY pair stay upbeat. Ahead in the day, the focus is likely to be on PMI releases across Eurozone and Deutsche Bank news flow.

EUR/JPY Technical Levels

Acceptance above 113.95 (50-DMA) would open doors for 114.40 (Sep 21 high). A violation there could yield 114.79 (June 30 high). On the other hand, a breakdown of support at 113.61 (session low) would expose 10-DMA of 113.16, under which losses could be extended to 112.60 (previous day’s low).