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EUR/JPY drops to two-week low

EUR/JPY cross dropped to 111.04 levels in Asia, the lowest since June 24 as flight to safety strengthened the bid tone around Yen.Trades around 111.40The cross currently trades around 111.40; down 1.10% on the day. Japanese Yen strengthened across the board as a sharp decline in Cable triggered a carry unwind and increased demand for traditional safe haven assets like treasuries.Consequently, the common currency weakened against the US dollar. Meanwhile, Yen strengthened against the USD due to carry unwind. Thus, the EUR/JPY cross dropped to the lowest since June 24.EUR/JPY Technical LevelsThe immediate support is seen at 111.00 (zero figure), under which the pair could drop to 11.00 (psychological figure). A break lower would expose support at 109.24 (Nov 2011 high). On the other hand, a break above 112.00 (zero figure) could yield re-test of the Asian session high of 112.69. A violation there would expose 5-DMA level of 113.44.



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