- Strong yen drags EUR/JPY lower, pair hits fresh 10-day low of 112.36.
- The pair is attempting a minor recovery from session lows, but bias lower.
- Markets await German ZEW business sentiment index, expectations are for a sharp rebound in July.
- The headlines number is expected to rebound to 2.1 versus a sharp -6.8 percent drop seen in June.
- Any miss in data could weigh heavily on the pair, drag till 111 levels then likely. Upbeat numbers could provide good entry for shorts.
- Bearish invalidation only above 50-DMA at 115.47, break above could take the pair to 115.47.
- Pair is holding strong trendline support at 112.34, break below will find next major support at 112.30 (Aug 5th low).
Recommendation: Go short on break below 112.30, SL: 113, TP: 111.90/ 111.40/ 111
