EUR/JPY drops to two-week lows below 130.00

• EUR/JPY extends three-day losing streak in Asia. 
• Risk aversion pushes Japanese Yen higher across the board. 
• EUR under pressure due to diverging central bank expectations. 

The Japanese Yen is pushing higher against G-7 majors in Asia, tracking a 0.25 percent drop in the S&P 500 futures. 

Major Asian equity markets are reporting losses on the first trading day of the week. For instance, Shanghai Composite index is down 0.30 percent. Stocks in South Korea and Hong Kong are down 0.50 percent and 0.25 percent, respectively. 

Consequently, the EUR/JPY pair is trading on the back foot for the fourth straight day and may extend losses further if the risk aversion witnessed in Asia hits European shores. 

Also, the common currency may feel the gravitational pull on speculation the Fed will likely revise higher its dot plot chart to four 2018 rate hikes at the forthcoming meeting. 

EUR/JPY Technical Levels

At press time, the pair is trading around a two-week low of 129.72. A break below 129.56 (March 2 low) would expose support at 129.35 (March 5 low) and 129.00 (psychological level). On the higher side, a convincing move above 130.24 (21-hr MA) would open up upside towards 131.00 (zero levels) and 131.26 (200-hour MA).