EUR/JPY returns below 114.00, session lows

A modest bias towards the risk aversion is now adding buying pressure to the Japanese currency, in turn dragging EUR/JPY back to sub-114.00 levels.

EUR/JPY capped by 114.60

The cross has managed to climb as high as the 114.60 area on Wednesday in response to a continuation of the bid tone amongst riskier assets in detriment of the usual safe havens, although the up move seems to have paused ahead of the opening bell in the Old Continent.

Data wise, Japanese Housing Starts rose at nearly 10% on a year to May, while German Retail Sales expanded above estimates 0.9% MoM during last month.

Ahead in the session, the ECB will publish its meeting minutes, while inflation figures and the key Tankan index will take centre stage in Japan early tomorrow.

EUR/JPY relevant levels

At the moment the cross is down 0.42% at 113.94 facing the next hurdle at 114.58 (high Jun.29) followed by 115.46 (low Jun.16) and then 118.18 (20-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).