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  1. EUR/JPY drops to the lowest level since Sept. 28.
  2. France and other Eurozone nations face lockdown on rising coronavirus cases. 
  3. ECB is under pressure to deliver additional stimulus. 

EUR/JPY fell to a one-month low of 122.99 a couple of hours ago, having declined by over 0.5% on Tuesday.

Lockdown fears weigh

Many Eurozone countries are imposing economically-painful national curfews and lockdown restrictions to combat the second wave of the coronavirus. 

Notably, France is reportedly considering a month-long national lockdown, which could take effect from midnight on Thursday. 

Indeed, the latest measures announced by some of the Eurozone nations are less severe than the ones implemented in the second quarter. Nevertheless, they are likely to torpedo the already fragile economic recovery in the common currency block, ramping up pressure on the European Central Bank to provide additional economic stimulus. 

Hence, the market is offering euros and snapping up anti-risk currencies like the Japanese yen and the US dollar. At press time, the pair is trading near 123.07. 

Technical levels