EUR/JPY: Rebound capped by hourly 100-SMA, awaits ZEW

The cross in the EUR/JPY resumes its rebound from multi-year troughs in the Asian trades, although faced fresh offers just ahead of 108 handle and slipped below the last amid mixed sentiment.

EUR/JPY awaits ZEW data for fresh impetus

The EUR/JPY pair advances +0.22% to 117.88, having failed to hold above 118 handle. The bulls fight back control after a temporary reversal seen yesterday, as sentiment around the cross remains underpinned amid increased hopes that Britain will not leave European Union (EU), following the EU referendum scheduled on Thursday.

However, the losses remain capped as the yen continues to weaken amid higher Asian equities, providing support to the cross. Looking ahead, the Brexit polls and news flow will remain in the spotlight, especially after the latest conflicting opinion polls. Besides, the ZEW survey and Yellen’s testimony will be also eyed.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 118.08 (daily high/ 1h 100-SMA) and from there to 118.69 (10-DMA). On the flip side, support is seen at 117.50 below which it could extend losses to towards 117.33 (Jun 20 Low).