EUR/JPY stepping down towards 130.00 as a new week sees risk aversion back on top

The EUR/JPY is testing past Friday's lows, clunking into 130.30 as the new week opens on the risk-averse side, with traders favoring the Japanese Yen on the market open as trade risks return to the forefront of market concerns.

The Euro saw rough action against the safe-haven Yen last week, peaking just beneath the 132.00 critical level early on before slumping back to a low of 130.50 in Friday's trading, and the bearish action is set to continue following revelations that European Union leaders in Brussels have flat-out rejected the latest Brexit proposal from the UK, keeping risk appetite muted as trade concerns across the globe continue to grind higher, chewing up traders' willingness to bid up riskier assets.

The early week sees quiet action across the board on the economic calendar, and the only event slated for the EUR/JPY is a low-tier German Buba Monthly Report, being released by Germany's Deutsche Bundesbank, but the specific release time is not known, and the report is unlikely to deliver any news that traders have not already digested.

EUR/JPY levels to watch

With the EUR/JPY pairing looking to continue last week's bearish movement, support is sitting at the last swing low on H4 candles near 129.90, with late June's peaks near 129.25, while bulls will be looking to surmount last week's highs near the 132.00 critical level before they can challenge April's highs far above at the 133.00 major level.