EUR/JPY soars to 3-week high at 117.67 as Yen continues to slide

The Japanese Yen continues to witness intense selling pressure on expectations of additional fiscal stimulus measures announcement, with the EUR/JPY cross jumping above 117.00 handle to currently trade at 3-week high level. 

The pair continues to be driven by news flow surrounding the anticipated stimulus announcement by the Japanese government and is being further supported by buoyant investor risk sentiment, as depicted by the ongoing rally in global equity markets.

With an empty economic calendar from the US, the pair might continue to benefit from the prevalent risk-on mood. However, traders might turn a bit cautious ahead of the critical BOE monetary policy decision, which has the potential to shaken the upbeat market sentiment.

Technical levels to watch

From current levels 118.00 round figure mark seems to act as immediate resistance, above which the pair seems all set to reclaim 120.00 psychological mark and head towards pre-Brexit highs resistance near 122.00 handle.

Meanwhile on the downside, weakness below 117.00 level could get extended but is likely to find strong buying interest around 116.00-115.80 horizontal support. Failure to hold 116.00 strong support might negate possibilities of any further up-move and turn the pair vulnerable to further downside in the near-term.