EUR/JPY peeps above 122.00

EUR/JPY is extending Thursday’s rebound from near 50-DMA support of 121.10, now trading around 122.15 levels.

EUR cheers peak populism

The Dutch elections saw an anti - immigration party of Geert Wilders lose to the liberal incumbent VVD party. Wilder’s failure is largely seen as the end of the ‘wrong sort of populism’ in Europe.

What’s more important is the fact that the odds of Marine Le Pen’s victory dropped below 30% following the Dutch election results.

Consequently, the common currency strengthened yesterday and remains well bid in Asia, especially against the safe haven Yen. The cross could continue to rise during the day ahead if the European equities put on a strong show.

EUR/JPY Technical Levels

A break above 122.63 (Mar 14 high) would open doors for 122.89 (Mar 13 high) and 123.06 (monthly 100-MA). On the other hand, a breakdown of support at 121.97 (5-DMA) could yield a sell-off to 121.54 (10-DMA) and 121.00 (zero figure).