EUR/JPY jumps to highest in two weeks above 137.00

• Japanese yen drops across the board, even as markets remain cautious.
• Euro modestly higher following French presidential elections.
• EUR/JPY heads for highest daily close since February 2018.

The EUR/JPY broke to the upside after trading in a range for more than a week. The cross broke 135.50 and jumped to 137.13, reaching the highest level since March 29. It then pulled back finding support above 136.50.

Yen under pressure

The rally of USD/JPY boosted the EUR/JPY. The Japanese yen remains under pressure as US yields continue to rise. The US 10-year and the 30-year hit fresh cycle highs earlier on Monday at 2.78% and 2.80% respectively.

At the same time, the euro rose modestly following the French election. A runoff between Macron and Le Pen will be held on April 27. If polls start showing Le Pen ahead, some negative euro pressure seems likely.

The EUR/JPY is again near the 2022 top and if it ends the day around current levels it will post the highest daily close since February 2018. If the euro recovers and holds above 137.00, a test of the 137.55 highs seems likely. On the negative front, a decline back under 135.30 would alleviate the pressure. A daily close below 134.50 should clear the way for more losses.

EUR/JPY daily chart