EUR/JPY attempts recovery towards 113

The cross in the EUR/JPY receives double blow from both a stronger yen and heavily offered EUR/USD, as risk sentiment remains under pressure after the Brexit debacle. However, a tepid bounce can be witnessed last hour as Europe gets underway.

EUR/JPY attempts recovery towards 113 handle

The EUR/JPY pair remains deep in the red around 112.65, although attempts a minor-recovery from below 112 handle, down -0.86% on the day. The EUR/JPY cross trims losses and now looks to regain 113 barrier as renewed buying interest seen around EUR/USD offers some respite to the bulls.

Moreover, a minor rebound in the USD/JPY pair back towards 102 handle also aids the recovery in the cross. However, further upside looks limited as concerns over the Brexit aftershocks continue to weigh on the investors’ minds.

Looking ahead, ECB President Draghi’s speech remains in the limelight amid a data-light economic calendar today.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 113.25/47 (Daily high/ R2) and from there to 114 (round number). On the flip side, support is seen at 111.75 (Daily low) below which it could extend losses to towards 111 (psychological levels).