EUR/JPY plunges to near 5-month lows amid notable JPY safe-haven demand

The EUR/JPY cross remained under some selling pressure for the eleventh consecutive session and plunged to the 117.00 handle for the first time since Nov. 18.

Spot extended the breakdown momentum below the very important 200-day SMA and prolonged the reversal move from the 123.00 handle touched around mid-March. 

Rising geopolitical tensions in the Korean peninsula and Middle East has been boosting the Japanese Yen's safe-haven appeal. On the other hand, uncertainty ahead of the French Presidential election remains a key overhand on the shared currency and further collaborated to the pair's slide to near 5-month lows. 

Investors now look forward to the release of German ZEW Economic Sentiment Index for April for some immediate respite for the shared currency.

German ZEW: Scope for upside surprises in both the Current Conditions and Expectations - TDS

Technical levels to watch

Below 117.00 mark the downslide is likely to get extended towards 116.65 intermediate support, which if broken would expose the 116.00 handle, en-route the key 115.00 psychological mark.

On the flip side, any recovery above 117.40 level now seems to confront resistance at 200-day SMA near 117.70 region, which if cleared might trigger a short-covering rally towards mid-118.00s with some intermediate hurdle near 118.00 the figure.