JPY bulls are on the rampage amid risk-off in the equities, courtesy of which the EUR/JPY cross has dropped to 125.70; lowest since March 24th.

Offered below 50-DMA

The offered tone gathered pace after the cross breached 50-DMA level of 126.72 in Asia. Asian equities dropped on Fed rate hike talk and weakness in oil, ensuring rise in demand for Yen. European equity futures have opened lower on the day as well and thus Yen is extending its gains across the board.

The economic data sets –Services PMI releases across Eurozone – may not have much say in determining the exchange rate if the risk-off worsens.

EUR/JPY Technical Levels

The immediate support is seen at 125.38 (Mar 24 low), under which the cross may attempt to cut through 125.00 and test 124.67 (Mar 22 low). On the other hand, a break above 126.09 (Apr 14, 2014 low) would expose hurdle at 126.28 (rising trend line hurdle) and 126.72 (50-DMA).