Italian worries are pushing the euro lower and lifting the yen
Two currencies at the opposite ends of the spectrum today with the euro being the weakest and the yen being the strongest so far.
That has seen EUR/JPY hit a low of 126.15 on the day, testing the 50.0 retracement level @ 126.18. The pair bounced a bit after hitting the support level trading now at 126.37 but this will be a key level to watch on the day.
Look out for how Italian stocks will perform later and if it continues to decline we could see a bit of contagion in other European equities and US equities - prompting further risk-off tones.
And that would be a double whammy that could nudge the pair lower on the day.
The next support level after the 50.0 retracement level will be the 125.00 handle followed by the 61.8 retracement level @ 123.50.
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