EUR/JPY fades the spike to 113.20

Today’s softer tone in the Japanese yen is now allowing EUR/JPY to rebound to levels above the 113.00 handle, although the gains appear capped near 113.20.

EUR/JPY focus on EU Summit

The cross is prolonging the rebound after testing multi-year lows in sub-110.00 levels in the wake of the UK decision to leave the European Union last week.

A mild bias towards the risk appetite trend is giving support to the risk-associated space so far today, trimming recent inflows to the safe haven JPY.

Events-wise, the 2-day EU Leaders Summit will take centre stage in Brussels, with members set to discuss the recent ‘Brexit’ vote without PM D.Cameron.

EUR/JPY relevant levels

At the moment the cross is up 0.43% at 112.94 facing the next hurdle at 115.46 (low Jun.16) followed by 118.42 (20-day sma) and then 121.60 (55-day sma). On the flip side, a breakdown of 109.47 (low Jun.24) would expose 105.93 (monthly low December 2012) and then 100.28 (monthly low November 2012).