EUR/JPY clocks three-day high on Yen selling

Broad based Yen selling in Asia pushed EUR/JPY cross to a three-day high of 115.75. The spot bounced off 114.93 (38.2% Fibo of 109.20-118.46).

Eyes ECB speak and Eurozone data

EUR traders await ECB's Nowotny speech and Knot speech due later today. Focus would also be on the Eurozone industrial production number, which is expected to show activity gained momentum in July.

However, the Japanese side of the story could dominate given the markets are pricing-in a further cut into the negative territory by Bank of Japan next week.

EUR/JPY Technical Levels

A break above 115.94 (Sep 9 high) could yield a test of supply around 116.58 (23.6% of Brexit day low – post Brexit high). On the lower side, breach of support at 114.93 (38.2% of Brexit day low – post Brexit high) could result in a drop to 114.51 (50-DMA).