• EUR/JPY slides 70 pips on sentiment-negative news, prints four-day downtrend.
• Ex-Japanese Prime Minister Shinzo Abe appears critical after bearing two gun shots from behind.
• Risk-aversion returns to the table, Nikkei 225 pares early-day gains.

EUR/JPY stands on slippery grounds, refreshing intraday low around 137.50, on news of an attack on former Japanese Prime Minister during early Friday. The geopolitical headline renewed the risk-off mood and helped the pair bears cheer the four-day downtrend.

“Ex-prime minister of Japan Abe is reportedly unconscious and unresponsive, and is in cardiac arrest,” said Kyodo news. The news previously reported that the former Japanese leader was shot in the chest and rushed to the hospital. As per the latest report from Reuters, “Japan's former Prime Minister Shinzo Abe is showing no vital signs.”

The news drowned the Treasury yields and pushed the 10-year US benchmark towards posting a 0.80% intraday loss, down three basis points (bps) to 2.978% at the attest. In doing so, the key bond coupons print the first daily loss in three and help the riskier assets, like the US dollar to recover early-day losses.

That said, the S&P 500 Futures drops 0.30% intraday while Japan’s benchmark equity gauge fails to extend the initial gains and retreats to 26,664, up 0.65% by the press time.

Moving on, updates from Japan and headlines surrounding catalysts could help forecast the immediate EUR/JPY moves ahead of a speech from ECB President Christine Lagarde where traders will be more interested in hearing about July rate hikes.

Technical analysis

A clear downside break of the four-month-old ascending trend line and 50-DMA, respectively near 139.60 and 139.00, directs EUR/JPY towards a late May swing high near 136.70.