EUR/JPY on the verge of breaking below 113.00 handle

Having faced rejection near 114.00 handle on Monday, the EUR/JPY cross remained well offered and is now on the verge of breaking below 113.00 round figure mark.

Despite of a slightly better-than-expected final print of German GDP growth data reflected signs of economic slowdown in the Euro-zone's largest economy. Moreover, mixed equity market performance has been supportive for the safe-haven appeal of the Japanese Yen and is seen restricting any recovery for the cross.

However, today's downslide in the cross has been solely driven by weakness surrounding the EUR/USD major, which might now gain fresh impetus from today's release of existing home sales data from the US. 

From technical perspective, the pair has been confined in a broader near-term trading range and is reversing from the top end of the trading range. Hence, the ongoing downslide could get extended towards the lower end of the trading range.

Technical levels to watch

On a sustained weakness below 113.00 handle, the weakening trend should get extended towards the lower end of the trading range support near 112.60-50 region, en-route multi-week lows support near 112.30 level. Meanwhile, recovery momentum above 10-day SMA near 113.25-30 region could get extended towards session high resistance near 113.50-55 area, above which the pair seems to make a fresh attempt towards reclaiming 114.00 handle.