EUR/JPY sidelined below 118.00

EUR/JPY is looking to extend its consolidative theme below the 118.00 handle amidst increasing cautiousness ahead of the EU-UK Referendum on Thursday.

EUR/JPY at the mercy of risk trends

The cross has managed to leave behind last week lows in the 115.40 area, although it has so far failed to sustain a breakout of the 118.00 handle, which continues to cap occasional bullish attempts.

Other than the UK referendum tomorrow, the next significant releases will be the advanced manufacturing PMIs in Japan and the euro area, all expected on Friday.

EUR/JPY relevant levels

At the moment the cross is retreating 0.12% at 117.66 facing the next support at 115.46 (2016 low Jun.16) followed by 113.54 (monthly low January 2013) and then 105.93 (monthly low December 2012). On the other hand, a breakout of 119.19 (high Jun.20) would expose 120.34 (20-day sma) and finally 122.32 (55-day sma).