EUR/JPY aiming to conquer 50-DMA

The EUR/JPY cross extended the recovery momentum for the fourth straight session and is now building on to its momentum above 114.00 handle.

Currently trading hovering just below 50-day SMA, near session peak level around 114.10 region, the pair's recovery from session low level of 113.70 has been solely driven by an offered tone around the Japanese Yen, which has failed to benefit from safe-haven demand amid bearish sentiment surrounding equity market. 

Meanwhile, a range bound price-action around the EUR/USD major has failed to provide any impetus and the cross remains at the mercy of dynamics surrounding the Japanese Yen. 

In absence of any major market moving economic releases from Euro-zone, US macro data, due later during NA session, would drive the USD/JPY and the EUR/USD majors, eventually providing some impetus for the EUR/JPY cross.

From technical perspective, a sustained move above 50-day SMA should lead to a fresh bout of short-covering and assist the cross to continue scaling higher from current levels.

Technical levels to watch

A follow through buying interest above 50-day SMA resistance near 114.20 region is likely to accelerate the up-move immediately towards 114.50 (Oct. 20 high) before the pair aims towards 100-day SMA resistance near 114.70 region. On the downside, sustained weakness back below 114.00 handle, leading to a subsequent drop below session low support near 113.70, would snap the pair's winning streak and drag it below 113.50 intermediate support back towards 113.00 handle.