The 2 best performing currencies today were the EUR/USD and USD/JPY so naturally, EUR/JPY traded sharply higher, enjoying its best day in more than 2 weeks. Between stronger U.S. data, hawkish Fed speak and the sharp recovery in U.S. yields, USD/JPY should continue to trade higher. While dollar strength could drag EUR/USD down, better than expected and Macron’s growing lead over Le Pen should lend support to the currency.

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Technically, today’s rally in EUR/JPY has taken the pair above the 23.6% Fibonacci retracement of the 2014 to 2016 sell-off to the 100-day SMA, a potential level of resistance. If the currency pair breaks above 119.40, we should see a smooth ride to 120. However if it fails below this indicator, support will be at the recent low of 118.25.