EUR/JPY consolidates above 113.00

EUR/JPY is falling marginally on Wednesday, consolidating around yesterday’s lows .On Tuesday the pair lost more than a hundred pips and reached the lowest level in three weeks at 112.96.

Today it moved sideways all day. It rose during the Asian session but the recovery found resistance at 113.60/65. From there it bounced slowly toward 113.00. Price has been able to hold, since the European session, on top of 113.00 and currently trades at 113.15/20, near the lowest levels since July 11.

On the fundamental side, uncertainty around fiscal and monetary announcements in Japan have disappeared at least in the short-term while in Eurozone today’s economic data showed the service PMI with mixed numbers. The next event that could trigger large moves in the Yen appears to be the US employment report on Friday.

Technical levels

To the upside, resistance levels might lie at 113.65 (daily high), 114.00 (psychological) and 114.80 (weekly high). On the other hand, immediate support is seen at 112.95/99 (Aug 2 & 3 low), 112.25 (July 5 low) and 111.90 (June 28 low / July 8 high).