EUR/JPY flirts with highs near 116.40

The EUR/JPY cross caught a fresh bid tone following the release of upbeat German employment numbers, now hovering near 116.40 region.

EUR/JPY awaits German CPI

The EUR/JPY pair now drops -0.17% to 116.38, struggling to take-out stiff resistance located just ahead of 116.40. The EUR/JPY cross trimmed losses after the euro received fresh impetus from somewhat upbeat German labour market report.

The number of unemployed fell again in the seventh month of the year, declining by 7,000 people, after a drop of 6,000 in the previous month and better than the expected 2,000 decline. The unemployment rate in Germany stayed at the lowest level in the last 20 years.

However, further upside appears to lack momentum as the yen remains strongly bid across the board amid a poor risk tone prevalent in the markets. The EUR traders now await the German CPI data for further momentum ahead of the US jobless claims data due later in the NA session.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 116.61 (10-DMA) and from there to 117 (key resistance). On the flip side, support is seen at 116.16/11 (Jul 22 & 21 low) below which it could extend losses to towards 115.36 (20-DMA).