The EUR/JPY pair reversed from the 114.00 zone touched last week, currently trading around 111.78.
The cross fell sharply during the course of the day on Tuesday, reaching the daily low of 112.38. Today, the pair initially fell to a two-week low of 111.04, before recovering to 111.99, ahead of ECB President Draghi’s speech at the ECB Statistics Conference. As of writing, the pair trades at 111.78.
Yen continues to surge as renewed Brexit fears are bolstering demand for the safe-haven currency. In the meantime, the euro is witnessing the aftershocks of heavy selling pressure surrounding the sterling, resulting in a sharp drop of the pair.
On a subsequent move above 112.14, the pair might confront resistance at 112.48 and 112.90 respectively. Conversely, in the scenario where the price breaks below the session low of 111.04, the pair could find support at 110.34 and Brexit lows of 109.50 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.