Overall, the euro suffered heavily across the board from the move. While EUR/USD is the one most watched, there was an even bigger move in
EUR/JPY with the pair dropping to three-month lows. Euro weakness was triggered by expectations the SNB is doing this in anticipation of ECB quantitative easing. Meanwhile, safe haven plays including the yen benefited as some investors panicked on the SNB move as risk was in a spin. EUR/JPY fell from around ¥138.80 all the way down to ¥135.00 where it is currently trading. This sees the pair test October 2014 lows and a break of this could see the pair trade at two-year lows in the near term. A close below the ¥135.00 level could trigger further weakness as some traders look to sell the pair on downside momentum. This trade seems to have legs given the key events coming up particularly for the euro are likely to spark further weakness.