EUR/JPY slips below 114.00 handle as Yen continues to surge

A fresh wave of risk-aversion trade boosted the safe-haven appeal of the Japanese Yen, with the EUR/JPY cross erasing all of its early gains to 114.80 region and turn back lower to break below 114.00 handle.

Cautious sentiment surrounding Asian equities trigger the initial leg of downfall for the cross. Moreover, weaker opening for European equity indices added on to broad based buying interest around Yen and dragged the EUR/JPY cross back towards session low level of 113.80.

In absence of any economic releases from the Euro-zone, the pair seems to be driven by prevalent risk sentiment surrounding equity markets and on news of additional fiscal stimulus measure from the Japanese government. 

The much awaited announcement was finally out, confirming an additional stimulus to the tune of 28.1 trillion Yen.

Technical levels to watch

On the immediate downside, 113.60-50 region seems to extend some support, which if broken seems to trigger a fresh leg of downfall for the cross that could drag the pair below 113.00 handle towards 112.80-75 support.

Meanwhile on the upside, 114.50 level seems to have emerged as immediate resistance. A sustained move back above this immediate resistance now seems to negate any near-term bearish bias and lift the pair back above 115.00 psychological mark, towards testing resistance near 115.50 ahead of 116.00 round figure mark.