In light of strong gains for the Euro, supported by the safe outcome of the important French Elections, guarantees the continuity of the EU and the Euro with the expected loss of the far right candidate calling for the French Exit from the EU and abandoning the Euro. Based on this optimism, the Euro continues to gain strongly against the other major currencies, and against the Japanese Yen. The Euro made strong gains, with the EUR/JPY reaching to the 122.45 level, which is where it is at the time of writing. The Euro is taking advantage of the weak Yen due to the ease in geopolitical fears, which usually support the safe heaven assets, led by the JPY and the CHF.
Technically: The EUR/JPY is closer to testing the resistance on 122.88K which could open the door towards testing stronger resistance areas around 123.30 and 124.00, and the latter is a very good purchase area where we expect a correction to collect gains.
On the bearish side: The nearest support levels are located at 121.90 and 121.00, any move below the latter would be a new chance to buy this pair again.
On the economic data front: The focus is going to be on the data of the European Cycle including the EU Manufacturing PMI. This is besides the market sentiment towards risk taking, and the renewed fears towards international tension, particularly in the Korean Peninsula. There are no expected important data today.
