EUR/JPY: struggles to get through 134 and hold, eyes for 134.40 on Abe victory?

EUR/JPY, at 134.06, is up +0.24% on the session so far on the back of Abe's convincing victory.

USD/JPY peeps above 114.00 on Abe win, higher yields

EUR/JPY made an early high of 134.00 right off the bat in a bullish gap when early birds noted the obvious outcome of the voting in Japan today and bought the yen crosses. 

The yen bears have the green light to continue pursuing the downside in the Japanese currency on the back of Abenomics and big easy monetary policy from the BoJ under the regime. Meanwhile, however, the greenback was holding the bulls up, although 134.12 was proceeding high in early Asia before offers took the cross down to 133.88 only to find further demand back to the 134 handle as the Tokyo open approach. 

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The yen is being spun and passed around in the Tokyo open, but the dominant theme of a stronger dollar is keeping it on the backfoot as well, which may translate into minimum gains through the cross while the euro is already starting out the week on the backfoot, down - 0.25% in Asia at the lows vs the greenback. 

EUR/JPY levels

Analysts at Commerzbank noted that the EUR/JPY rallied above its previous October high at 133.50 last week and has eyed up the September peak at 134.40: 

"Below good support at 131.75/68, where the last month’s lows were made, lies the 55 day moving average at 131.33. Should it be slipped through, the mid-September low at 130.64 would be in focus. Below it lies the September low at 129.40 and the August low at 127.57. A move above the 134.58 November 2015 high would target the 2008-2017 resistance line at 140.90," the analysts argued.