Under 161.00, Q2 Tankan Survey Today, EUR/JPY Higher Post 1st Round French Elections

USD/JPY tracks near 160.80/85 in early Monday dealings, little changed from end Friday levels. Yen was a laggard on Friday's session, as the USD fell against most of the G10 (albeit modestly, with BBDXY index down 0.14%). USD/JPY fell back to 160.26 as US yields in US trade on Friday post the slightly softer PCE data. However, both moves were largely reversed.

• Early focus this morning is on fallout from the first round of French parliamentary elections. EUR/USD is a little higher in the first part of trade, up 0.30% to 1.0740/45, as Le Pen's far right party didn't poll as strongly as some opinion polls suggested, while left leaning parties vowed to bloc Le Pen's majority ambitions.
• EUR/JPY remains in a firm uptrend. The pair last near 172.80, fresh cycle highs.
• For USD/JPY, Friday highs came in at 161.27, which was a fresh high in the pair back to 1986. Focus remains firmly on the upside from a technical standpoint. Last week’s gain resulted in a breach of key resistance at 160.17, the Apr 29 high. The break confirms a resumption of the primary uptrend and opens 161.50, a Fibonacci projection. Note that moving average studies are in a bull mode position, highlighting a clear uptrend. Initial key support to watch is 158.30, the 20-day EMA.
• There remains a wedge between USD/JPY and US-JP yield differentials, although the 10yr spread recovered some ground on Friday in the USD's favor.
• Locally today, we have the Tankan survey for Q2, with a relatively steady outcome expected relative to Q1 (11 for large manufacturing). Also out is the final PMI read for June.