EUR/JPY extends rally beyond 113 handle

The EUR/JPY cross remains firmer on the bids above 113 handle, extending its upbeat momentum into a second day today, mainly driven by strong gains in the USD/JPY pair in wake of upbeat US jobs data.

EUR/JPY stronger post-NFP

The EUR/JPY pair now trades +0.21% higher at 113.23, easing-off fresh session highs reached at 113.34 last hour. The EUR/JPY cross keeps the bid tone intact, although retreat from higher levels as the EUR bulls appear unimpressed by upbeat German industrial production data. The German industrial figures were up 0.8% m/m in June versus a revised -0.9% booked in May, while expectations stood at 0.7%.

While the cross continues to find support from the extended rally seen in the USD/JPY pair, after the US dollar soared against its major peers following the release of stronger US payrolls data released last Friday.

Next of note for the pair remains the Euro zone Sentix and US LMCI data due later in the day, while dismal Japanese current account data continues to underpin the cross.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 113.40/50 (Daily high/psychological levels) and from there to 113.73 (10-DMA). On the flip side, support is seen at 112.96 (5-DMA) below which it could extend losses to towards 112.68 (daily S2).