EUR/JPY down over 1 big figure as Greek default drama unfolds

Dhwani Mehta FXStreet

The shared currency gets heavily battered by its Japanese counterpart in the Asian morning, now pushing EUR/JPY further towards 123 handle.

EUR/JPY faces double whammy

The EUR/JPY pair now drops -0.74% to flirt with 2-week lows of 123.26, after having met aggressive selling pressure near 124.40 region. The cross in EUR/JPY witnessed a steep drop after reports hit the wires of Greece hinting at a default, citing that the debt-embattled nation may opt out of next payment without a debt deal if creditors cannot agree on debt relief.

As a result, risk-off remains at full steam so far this session, boosting the safe-haven bids for the yen across the board, adding to the downside in the cross. Meanwhile, the USD/JPY pair drops -0.40% to trade near 2-week lows of 110.78.

Looking ahead, the pair will be driven by risk-trends and EUR dynamics ahead of the US core PCE price index and consumer confidence data due later in the NA session today.

EUR/JPY: Technical Levels

Higher side: 124.11 (May 5 high), 124.52/61 (May 7 & 6 highs), 125 (round figure)

Lower side: 123 (key support), 122.53/52 (May 4 & 18 low), 121.79 (May 2 low)

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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