- The single currency is extending its gradual recovery path into early Europe session.
- EUR/JPY is extending gains above the 113 handle, Techs on intraday charts are bullish.
- CFTC speculative positioning data for the week ending 2 August 2016 showed leveraged funds reduced their net long JPY positions by USD1.0bn (largest positioning change in the week).
- Next hurdle for the pair on the upside is seen at 114.11 (10-DMA) ahead of 115 (trendline resistance) and then 115.35 (20-DMA).
- 5-DMA at 112.96 is minor support on the downside, while major supports is seen at 112.40 (trendline).
- Break below 112.40 could drag the pair to 110.85 levels.
Recommendation: Good to buy on dips around 113 levels, SL: 112.40, TP: 113.64/ 114/ 114.75
