EUR/JPY is down 24 pips to 128.96

EUR/JPY daily chart

Credit Agricole CIB Research discusses the EUR outlook into the German elections and stays long EUR/JPY targeting a move towards 134.50.

"Under most post-election scenarios, we see the EUR regaining ground. This is mainly because most of the possible coalition combinations after the election include either the SPD or the Greens or both. These parties are pro-European and, in the case of the Greens, want to pursue proactive official policies with more immediate growth-positive impact," CACIB notes.

"The results from our analysis confirm our constructive medium-term outlook for EUR/USD, EUR/CHF and EUR/JPY. We remain long EUR/JPY. Indeed, a coalition that leads to higher levels of investment spending and 'more Europe' could entice Japanese investors back into Bunds after having significantly reduced their positions since the beginning of the European sovereign debt crisis," CACIB adds.

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