EUR/JPY fails to extend its recovery beyond 115.00, back at 113.00

The EUR/JPY cross remained well offered and an initial attempt of recovery got sold into with the pair now trading back around 113.00 region.

After spiraling down below 110.00 psychological mark, its lowest level since Dec. 2012, the pair attempted a tepid recovery, which fizzled around 115.00 mark. 

Global risk aversion sentiment triggered by the 'Brexit' victory at the historic EU referendum in the UK, boosted safe-haven demand for the Japanese currency. The pair, however, found some support after BoJ's announcement to increase liquidity in order to curb extreme volatility and sharp appreciation of the Japanese currency. 

Adding to this, ECB's readiness to provide liquidity in euro to ensure price and financial stability reassured markets and provided some support to the EUR/JPY cross.

However, as the NA trading session got underway, a fresh bout of safe-haven buying seems to exert renewed selling pressure on the EUR/JPY cross.

Levels to watch

Sustained weakness below 113.00 would again bring session lows support around 110.50-110.00 region back into the picture. Meanwhile, recovery above 115.00 handle is likely to gain traction, assisting the pair back towards 117.00 round figure mark.