EUR/JPY jumps 130 pips to 132.47, Is EUR a safe haven?

• The EUR is demonstrating the safe haven-like behavior.
• EUR/JPY recovered 130 pips from the session low to an Intraday high of 132.47.

EUR/JPY erased the drop to 131.17 in Europe and rose to a session high of 132.47 despite signs of risk aversion in the markets.

The German 10-year bund yield to a 1-1/2 week low of 0.346 percent in response to heightened political uncertainty in Germany. Also, Germany's benchmark index fell to 50-day MA support 12,929 levels. As of writing, the index is down 20 points.   

Still, the EUR is on the rise, which is peculiar to a safe haven currency. Also, the fact that the common currency is scoring gains against the Japanse Yen; a classic safe haven;  only highlights the EUR's safe haven-like behavior.

Ahead in the day, the focus will be on ECB speak. Nowotny will speak at 11:45 am GMT, Lautenschlaeger at 12:15, Draghi at 2 pm and again at 4 pm, and Constancio at 2:15. Analysts at TD Securities believe Draghi’s appearance before the European Parliament at 2 pm is probably most worth keeping a close eye on.

EUR/JPY Technical Levels

As of writing, EUR/JPY is trading at 132.30 levels. A break above 132.55 (1-hour 200-MA + 100-MA) would open doors for 132.85 (61.8% Fib R of Nov. 14 high - Nov. 19 low) and 132.96 (1-hour 100-MA). On the other hand, a break below 132.00 (psychological level) could yield 131.40 (Nov. 8 low) and 131.17 (session low).