EUR/JPY breaking lower on 'no vote' to win Italian referendum

EUR/JPY has settled down after an opening bearish gap on the Italian referendum - Italian referendum: PM Renzi likely to lose today's referendum, exit polls show (opening exit polls).

EUR/JPY dropped below the 121 handle to print a low of 119.04 so far and now awaits the outcome of the votes. The risk to the markets are a no vote winning and Renzi, who had said he would resign, speaking on the result and subsequent announcements.

So far, at time of writing, Italy's referendum 'No' vote is projected at 56-60%, according to RAI exit poll. 17 regions have voted for no and we now await Renzi to speak.

EUR/JPY levels

"Dips lower will find initial support at 118.45/ 21st July 2016 high," suggested analysts at Commerzbank, while the 200 day ma also is found here at 117.11. "Below here lies 116.37/29, this is where the September and October highs were made. We suspect that longer term the market is basing. This will only be confirmed however by a close above 120.16 on a weekly closing basis," argued the analysts at Commerzbank.