EUR/JPY headed back towards 111.00 handle

The EUR/JPY cross remained well offered and is now extending its slide for fourth consecutive day to move within striking distance of 111.00 handle. 

The Japanese Yen continues to gain on global fight to safety while the shared currency remained subdued in absence of any major fundamental trigger, resulting into resumption of the pair's downward trajectory.

The pair has failed to get any respite despite of the post-Brexit calm in global financial markets as investors remained worried over the potential economic implication of UK vote to end its membership with the European Union.

Global uncertainty seems dominate economics and is thus playing a dominant role in determining the pair's downward trajectory. Going forward, risk sentiment surrounding riskier asset class would continue to drive the cross in the near-term.

Technical levels to watch

On a sustained weakness below 111.00 handle, the cross is likely to drop back towards Brexit-led swing lows support near 109.40-35 region with 110.00 psychological mark acting as intermediate support. Meanwhile on the upside, 112.00 handle now seems to have emerged as immediate resistance, which if conquered should assist the pair to extend the recovery trend back towards 114.00 round figure mark.