EUR/JPY: within bullish territory with eyes on 125.80

Currently, EUR/JPY is trading at 124.93, down -0.12% on the day, having posted a daily high at 125.41 and low at 124.56.

EUR/JPY has been consolidating the bid from the 122.50's region as of the 18th March. The euro is still within a bullish channel despite today's come-back in the DXY above 97 again. The euro recent garnered strength from the idea that the ECB will start hinting at tapering in coming meetings while the dollar is getting hit by both economic and political headwinds. 

• EUR/USD drops below 1.12 as greenback gathers momentum

For today, the Markit flash estimates in euroland were positive, with regional PMIs advancing further in May.  The German IFO survey showed that business confidence remains strong, with the index up to 114.6 from previous 113.0.

EUR/JPY levels

Meanwhile, the yen has been slightly offered and counters the bid in the dollar today, leaving the cross neutral. On a drop out of the sideways channel, the next support is seen at 124.50 ahead of 123.50. However, EUR/JPY's strong rebound off the 20 day ma keeps the market immediately bid, according to analysts at Commerzbank.  "EUR/JPY has sold off to and seen a strong recovery off the 20 day ma at 123.50 Attention is back on the 125.81 recent high then the 2016-2017 channel at 127.00. Beyond this the market looks set for further gains towards the 129.55/130.89 50% retracement and the 200 week ma."