EUR/JPY losing the grip around 113.20, IFO eyes

The better sentiment around the Japanese safe haven is now prompting EUR/JPY to retreat to the 113.20/15 band, or session lows.

EUR/JPY lower on JPY buying, eyes on IFO

The cross is posting losses for the first time after two consecutive advances, rebounding from the 112.00 neighbourhood although with the upside so far limited around the mid-113.00s.

Increased demand for JPY has dragged the cross lower from overnight tops near 113.50, as skepticism remains high after Governor H.Kuroda has once again reiterated the readiness of the central bank to implement all necessary measures in order to clinch its inflation goal.

In the data space, German IFO is expected to come in on a firm note during the current month, although the Expectations component is seen a tad lower, all ahead of the introductory statement by ECB’s M.Draghi at the Quarterly Hearing before the Committee on Economic and Monetary Affairs of the European Parliament. Further ECB-speak would come from board members Y.Mersch, I.Angeloni and B.Coeure.

EUR/JPY relevant levels

At the moment the cross is losing 0.04% at 113.22 facing the immediate support at 112.03 (low Sep.22) ahead of 111.40 (78.6% Fibo of June-July up move) and then 110.54 (low Jul.8). On the other hand, a surpass of 114.42 (20-day sma) would expose 116.41 (high Sep.2) and finally 116.59 (100-day sma).