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

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)