EUR/JPY: Yen buying pushes the pair below 122.00

• EUR/JPY has slipped below 122.00 on haven demand for Yen. 
• Risk assets have come under pressure on China's coronavirus outbreak.
• Technicals favor deeper losses to 121.75.

The anti-risk Japanese yen is gaining ground against the single currency amid the risk-off tone in the markets. 

EUR/JPY is currently trading at session lows near $122.90, having dropped more than 20 pips in the 60 minutes to 02:00 GMT. 

Risk is being sold

The futures on the S&P 500 are currently reporting a 0.45% drop and the major Asian indices like Japan's Nikkei and the Shanghai Composite Index are shedding more than 1% each. 

Further, oil prices are flashing moderate losses and the haven assets are gaining ground. 

Investors are shunning risk reportedly due to China's coronavirus outbreak. The flu, which began in Wuhan, has spread to more than 200 people. Also, reports are doing the rounds that the virus has hit the Australian shores. 

Channel breakdown

EUR/JPY has dived out of a three-day sideways channel, signaling a resumption of the sell-off from highs near 123.00 and opening the doors for a drop to 121.75.

That level may remain elusive if the equities turn green and the Bank of Japan sounds dovish. The central bank's rate decision is due in a few minutes. 

Technical levels