EUR/JPY: Sell-Off Extends, Attacks 121 Handle
The bearish pressure behind the EUR/JPY cross accentuated post-European open, mainly driven by aggressive yen buying across the board amid risk-aversion.
EUR/JPY gives-up 60-pips in the last hour
The EUR/JPY pair slumps -0.67% to 121.12, hovering close to fresh session lows reached at 121.08 last hour. The EUR/JPY cross was slammed to 121 handle after the JPY bulls extended control as risk-off conditions escalated after the European indices opened lower and now extends further to the downside. In times of uncertainty, investors flock to safe-havens such as the yen, gold etc., in a bid to protect their wealth.
While the EUR/USD pair edges lower below 1.14 handle as markets react negatively to ECB Draghi’s comments, further adding to the EUR/JPY weakness. Next of relevance for the cross remains the US jobless claims data for fresh insights on the US labour market, following Friday’s dismal NFP report.
EUR/JPY Levels to consider
The pair has an immediate resistance at 121.60/71 (5-DMA/ daily pivot) and from there to 122 (round number/ 10-DMA). On the flip side, support is seen at 120.75 (Multi-year low) below which it could extend losses to towards 120.00.