The EUR/JPY plummets amid a rise in political risk

The Yen has been gaining a lot of strength versus its main counterparts, but especially versus the Euro as the political risks in Europe keep mounting. The possibility that the French elections could be won by one of the candidates against the European Union has kept the financial markets in Europe on their toes. On top of that, there were some explosions today in Germany just before one of the soccer games of the Champions League. The EUR/JPY breaks below the 117.00 level and it drops very close to the 116.00 level. The 116.00 level may act as a support, but if the political risks keep mounting, then the pair may break below that level. The 55 day EMA (purple line) is about to cross below the 200 day EMA (blue line) and if such cross occurs, then a “death cross” will be confirm, which is a pattern with bearish implications for the pair in the middle term. To the upside, the first resistance level may be the 117.00 zone, followed by the 118.00 level.