EUR/JPY is chipping away at 100-DMA hurdle

The bid tone around the Yen weakened in Asia, allowing for a minor technical correction in the EUR/JPY pair to the 100-DMA resistance seen at 119.32. 

Focus on Franco-German yield spread

The demand for the common currency remains at the mercy of the France-German 10-year yield spread. Marine Le Pen victory is largely perceived to be a risk-off event, thus EUR/JPY cross could resume the fall if the polls show Le Pen in the lead. 

Meanwhile, the Yen side of the story could be affected by the action in the stock markets and treasury yields. 

EUR/JPY Technical Levels

The cross printed a high of 119.44 earlier today and is now seen trading around 119.30 levels. A break above the 5-DMA level of 119.55 would expose 120.06 (10-DMA). On the downside, breach of the session low of 119.08 could yield a sell-off to 118.59 (Wednesday’s low).