Chart - Courtesy Trading View
EUR/JPY was trading 1.60% lower on the day at 131.41 at around 10:30 GMT.
The pair plunged lower to test 2-month lows just above 134 handle before paring some losses.
The re-emergence of the risk aversion put the pair under extra pressure as markets move towards haven-assets.
Further adding to the downside pressure was moderate demand for bonds which pushed the German 10y yields to shed ground for the third session in a row.
On the other side, ECB’s Board member Kazimir joined the July-rate-hike bandwagon earlier in the session, inline with members' comments so far this week.
EUR/JPY trades with a bearish bias. The pair is poised to test daily cloud support.
Momentum strongly bearish. Break into daily cloud will drag the pair lower. Little support seen till 200-DMA at 131.
