EUR/JPY grappling with 125.00 as risk aversion bolsters the Yen

• The Euro is slumping against the safe-haven Yen as markets face continuing fears of Turkish contagion.
• Monday's calendar is a thin showing, but Tuesday resumes delivering meaningful measures.

The EUR/JPY is trading into 125.40 as European markets come online for Monday after failing to close the week's opening gap and settling into new lows near 125.15.

The Euro has seen a rapid rise in market fears of contagion from Turkish banks into the European Union's banking sector, and traders are looking towards Turkey's imminent action plan to address the collapse of the TRY which is fueling risk runs in related emerging markets.

The economic calendar for Monday is an anemic showing, and market participants will be trapped waiting for further headlines regarding the current lack of risk appetite, though EUR bulls will be looking towards Tuesday's Harmonized CPI reading for Germany, with the y/y reading expected to hold steady at 2.1%.

EUR/JPY levels to watch

The last swing low at 124.60 represents a significant barrier for the EUR/JPY, and if bears manage to push the pair beyond, an extended slide into 2017's opening prices near the 122.50 level could be seen, while a bullish correction is seeing declining lows above at the 132.00 technical level acting as resistance.