EUR/JPY – Bears attack 117.00

The bid tone around Yen spiked in Asia, pushing EUR/JPY lower, however, EUR/USD resilience made sure the cross avoided break below 117.00.

Hovers above 61.8% Fibo of Brexit drop

At the time of writing, the cross traded just above 117.11 (61.8% of Brexit day drop). The currency pair clocked a low of 117.04 levels largely on the back of a drop in the USD/JPY pair from 106.32 to 105.80 levels. Weakness in the treasury yields and failure on part of USD/JPY to stay above 50-DMA could have led to the drop.

Meanwhile, EUR/USD stays comatose around 1.1066 (50% of 1.0517-1.1616) and that helped cross avoid a break below 117.00 levels. Given the light economic calendar in Asia, the cross remains largely at the mercy of the overall market sentiment.

EUR/JPY Technical Levels

A breakdown of immediate support at 117.00 (zero figure) could yield a test of 116.67 (5-DMA). A violation there would open doors for a drop to 115.60 (50% of Brexit day drop). On the higher side, resistance at 117.76 (today’s high) if breached would expose 118.40 (Friday’s high). If taken out, the cross could target 118.98 (76.4% of Brexit day drop + 50-DMA).