EUR/JPY off-session low to 113.00 region ahead of ZEW sentiment

The Japanese Yen rose sharply across the board on Tuesday, with the EUR/JPY cross dropping close to monthly lows before retracing swiftly back close to 113.00 handle ahead of ZEW economic sentiment.

In absence of any major fundamental trigger, a broad based US Dollar selling has been the key factor driving JPY and the shared currency higher across the board. The Japanese Yen, however, maintained its outperformance amid weakness in equity markets, which is seen supporting its safe-haven appeal.

Meanwhile, a bout of short-covering around the EUR/USD major helped limit further downslide and assisted the cross to bounce-off lower levels. Today's release of German and composite Euro-zone ZEW economic sentiment will be in spotlight and might provide fresh impetus to the cross during European trading session.

Technical levels to watch

From current levels, recovery momentum above 113.00 region (nearing 10-day SMA) is likely to boost the pair immediately towards 113.50-55 intermediate resistance before the pair attempts a fresh move towards reclaiming 114.00 handle.

On the flip side, renewed weakness below 112.70-65 area should now accelerate the slide, even below 112.30 multi-week lows support, towards its next major support near 111.80 level.