EUR/JPY consolidates at 125.00, closer to 2017 highs

The euro is up against the yen for the second day in a row and is headed toward the highest close in a month. EUR/JPY broke above the 124.60/70 area and reached 125.02. The pair is hovering around 125.00, still unable to rally above but remains above the 124.70 area, confirming the break of a relevant technical level. 

A decline of the yen amid risk appetite and some resilience from the euro, particularly after the upbeat IFO survey data, helped price, move north.  

Eyes on May highs, near 2017 top 

The pair holds a strong bullish tone, with many technical indicators supporting the upside. It is well above the 20-day moving average that stands at 123.95 and offered support last week. A decline below that line would remove the current bias and could trigger a slide to 123.20/30.

If the euro is able to hold on top of 125.00, a test of May highs located at 125.30 could be expected. Above that level, attention would turn to the 125.80 area (May 16 & 25 high), that is where current year high is located. A daily close above 125.40 would be a relevant signal of a test of the 125.80 zone.