EUR/JPY drops to session low at 114.25 amid risk-off sentiment

After once failing to sustain its up-move beyond 115.00 handle for second straight session, the EUR/JPY cross has now erased Wednesday's tepid recovery gains amid prevalent risk-off sentiment.

Currently trading at session low around 114.25 region, the cross is now within striking distance of weekly lows support near 114.00 handle as weakness in global equity markets is supporting the Japanese Yen's safe-haven appeal. Thursday's release of weaker-than-expected Chinese trade balance data resurfaced concerns of China-led global economic slowdown and is weighing on investor sentiment. 

Moreover, an offered tone around the EUR/USD major, on increasing prospects of an eventual Fed rate-hike action, is exerting additional selling pressure around the cross. 

In absence of any major economic releases, the prevalent market risk-sentiment would continue to be the sole driver of the pair's trajectory on Thursday. 

From technical perspective, repeated rejections from 100-day SMA and a subsequent break below 114.00 support might turn the pair vulnerable to extend its downslide in the near-term.

Technical levels to watch

Immediate downside support remains at 114.00 handle, which if broken decisively is likely to accelerate the slide immediately towards 113.40 intermediate support before the cross breaks below 113.00 round figure mark and head towards testing its next major support near 112.50-40 region.

On the flip side, 115.00 psychological mark now becomes immediate resistance above which the cross is likely to make a fresh attempt towards conquering 100-day SMA resistance near 115.50 region.