During the early Monday Asian session EUR/JPY hit a high of 124.49, last seen on May 12 of 2016, helped by Macron’s victory in the French presidential election.
However, it saw a subsequent retracement, due to profit taking, falling back below the psychological level at 124.00.
On the 4-hourly chart, EUR/JPY broke through the near-term major uptrend line support, indicating the bullish momentum has been waning.
The current price still holds above the psychological support level at 123.00, where there is stronger support.
If the downtrend further breaks this level it is likely that it will see an extended falling in price.
The daily Stochastic Oscillator reading is above 80, suggesting a pullback.
The resistance level is at 123.40, followed by 123.60 and 124.00.
The support line is at 123.00, followed by 122.60 and 122.30.
Keep an eye on ECB Governor Draghi’s speech at 12:00 BST on Wednesday May 10. It will likely affect EUR and the EUR crosses.