EUR/JPY surrenders 120 yet again, drops to 119.60

The cross in the EUR/JPY came under renewed selling pressure post-Tokyo open, as escalating Brexit tensions continued to weigh on market sentiment and kept the safe-haven bids for the yen intact.

EUR/JPY eyes Monday’s low

The EUR/JPY pair drops -0.24% to 119.65, retreating further from 120.12 highs in a bid to test daily lows struck previously at 119.63. The bears fought back control as the underlying risk sentiment continues to favour the safe-havens such as the yen, gold etc., in response to increasing worries over the UK’s exit from EU membership after the latest polls showed Leave camp in the lead.

Looking ahead, attention now shifts towards the fundamental triggers, with markets having largely ignored upbeat Japanese industrial production data. Next in sight remains the Eurozone industrial output data, which may keep the EUR traders busy ahead of the US retail trade report due later in the American session.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 120 (round number) and from there to 120.46 (daily R1). On the flip side, support is seen at 119 (Multi-year low) below which it could extend losses to towards 118.50.