EUR/JPY halts 3-days losing streak, turns positive at 112.75

After an initial dip below 112.50 level, the EUR/JPY cross has managed to recover and move back in positive territory to currently trade just few pips away from session high around 112.75 region.

During early European trading session, the shared currency witnessed a minor dip on the back of disappointing German factory orders, but managed to recover quickly from lower level to stall three-days of losing streak. Nevertheless, the cross is still headed for a second consecutive week of steep losses. 

Moreover, on short-term charts the pair has decisively broken below a descending trend-line support is trading below 61.8% Fibonacci retracement level of its post-Brexit recovery move. Hence, any recovery from current levels is likely to be short-lived and the pair might extend its downward trajectory in days to come.

Meanwhile, in absence of any major economic releases from Euro-zone, focus would remain on US monthly jobs report, which is likely to have diverging effect on the EUR/USD and the USD/JPY major and hence, might provide some short-term momentum for the EUR/JPY cross.

Technical levels to watch

Any attempts of further recovery now seems to confront strong resistance near 113.00 round figure mark, which if cleared should assist the pair to stage additional recovery further towards 113.60 horizontal resistance ahead of 50% Fibonacci retracement level resistance near 113.95-114.00 round figure mark. 

On the flip side, weakness below session lows support near 112.50 region now seems to open room for continuation of the pair's weakening trend further towards 111.50-45 support before eventually dropping to retest 111.00 handle. Below 111.00 support, the downfall could further get extended even below 110.00 psychological mark support, toward Brexit swing lows support near 109.50 region.