Thursday's recovery from the vicinity of 120.00 psychological mark seems to have stalled around 121.20 level and the EUR/JPY cross is now trading back below 121.00 handle. The cross remained well offered as the Japanese Yen continues to benefit from the global risk aversion as sell-off across global equity markets continue to weigh on investor sentiment. Other important factors that have kept investors worried are the upcoming central bank meetings in the US and Japan and the UK-EU referendum on June 23, further boosting the safe-haven appeal of the Japanese Yen. As James Chen, CMT, Chief Technical Strategist at CityIndex notes, "the euro currency should also be significantly affected by both the speculative risk preceding the upcoming referendum and its actual outcome.""To make matters potentially even worse for EUR/JPY, both this risk and outcome are quite likely to promote general market turmoil, in which case risk aversion could further permeate market sentiment and lead to more buying of the safe haven yen."Technical outlookPointing to the bearish set-up for the EUR/JPY, James writes, "With sustained trading below this 122.00 level, EUR/JPY could continue to move lower in the run-up to the EU referendum and, depending on the outcome, also after the votes are counted and the results are released. The next major downside targets on such a move are at the 119.00 and then 116.00 support levels."