USD/JPY Back Close To 157.00, EUR/JPY Lower On EU Political Uncertainty

USD/JPY tracks near 156.75/80 in recent dealings, not too far off Friday session highs, just above 157.00. We have had a 156.52-157.00 range so far this morning, with some volatility likely reflective of EUR/JPY weakness post EU parliamentary election results.

• Far right parties are doing strongly and French President Macron has called a snap legislative election. EUR/JPY is back under 169.00 (earlier lows were at 168.74).
• For USD/JPY, the US NFP beat from Friday, coupled with firmer wages, has seen US-JP yield differentials swing sharply back in the USD's favor. We had US yields finish around 12-16bps higher across the benchmarks on Friday.
• Technically for USD/JPY, upside focus will rest on the May 29 high at 157.71, which is viewed as key resistance. On the downside, the 154.76 level is the 50-day EMA, a support point.
• Today on the local data calendar we have Q1 GDP revisions. Headline results are expected to be the same as the initial print. April trade figures are also due, along with May bank lending.
• The opposition party is also calling on PM Kishida to hold a snap election (see this BBG link for more details).