EUR/JPY clocks fresh 13-month high

EUR/JPY clocked a fresh 13-month high of 124.96 in early Asia as markets shrugged off Trump’s Russia leak scandal.

Eyes German Zew survey

German Zew survey due later today is expected to show an uptick in the Economic Sentiment (May) and Current Situation (May) indices. The uptick in the survey indices would be hardly surprising as the German economy continues to be on fire.

The solid expansion of 0.6% in the first quarter is expected to continue in the months ahead, said the Economic Ministry in its monthly report released yesterday.

The sentiment indices are also likely to improve on account of the fading political risks. On Sunday, Merkel won the election in the Germany’s most populous state. Her change of fortunes over the last one year only adds credence to the ‘peak populism’ argument. 

EUR/JPY could cut through hurdle at 125.00 if the Zew survey indices beat estimates. The Eurozone trade balance, first quarter GDP figures and Zew survey could move the pair as well.

EUR/JPY Technicals

The pair was last seen trading around 124.70 levels. The daily RSI is overbought.

A break below 124.26 (5-DMA) would expose 124.09 (Dec 2016 high) and 123.91 (10-DMA). On the higher side, a daily close above 125.00 would open up upside towards 126.09 (Apr 2015 low) and 127.50 (May 2013 low).