EUR/JPY rally fails around 124.00

The better momentum from the Japanese currency is now forcing EUR/JPY to deflate from daily tops in the 124.00 neighbourhood.

EUR/JPY gains capped near 124.10

After clinching fresh 5-month tops beyond 124.00 the figure, the cross seems to have run out of steam and has now retreated to the 123.30 region amidst a strong pick up in the demand for the safe haven JPY.

In addition, EUR is suffering a ‘relief selling’ mood after centrist Emmanuel Macron became the next French president following yesterday’s second round elections vs. far-right candidate Marine Le Pen (65%-35%).

In the data space, German Factory Orders rose at a monthly 1.0% in March, matching forecasts, while the Sentix Index is due later in Euroland.

EUR/JPY relevant levels

At the moment the cross is retreating 0.48% at 123.37 facing the immediate support at 122.87 (low May 5) followed by 122.53 (low May 4) and finally 121.91 (23.6% Fibo of the April-May rally). On the other hand, a breakout of 124.11 (2017 high May 8) would aim for 124.13 (high Dec.14 2016) and then 124.67 (high May 12 2016).