EUR/JPY near session high at 114.35 after German CPI

Extending its reversal from Monday's nearly 4-week, the EUR/JPY cross dropped to sub-114.00 session low level but managed to recover its lost ground and is currently trading comfortable above 114.00 handle, at around 114.35 level. 

The weaker-than-expected release of German Prelim CPI did little to provide any respite to the EUR/USD major, which remains well offered amid increasing prospects of an eventual Fed rate-hike action. The flash version of German CPI for the month of August came-in to show flat consumer prices on a monthly basis, which was below consensus estimating a rise of 0.1% and 0.3% rise recorded in July.

However, offered tone surrounding the Japanese currency, despite of data showing Japan's unemployment rate dropped to a 21-year low, has been the sole driver for the EUR/JPY crosses on Tuesday. 

Technical levels to watch

From current levels, sustained strength above 50-day SMA immediate resistance near 114.40-50 region, leading to a momentum above Monday's high near 114.70 region, seems to help the cross to break through 115.00 handle and head towards testing 115.75 intermediate hurdle ahead of its next major resistance near 116.25-30 area. 

Meanwhile on the downside, 114.00-113.90 zone now becomes immediate support. Weakness below this immediate support is likely to be bought into and hence, could be limited by support near 113.10-113.00 region.