EUR/JPY takes-out Thursday’s high, what next?

The EUR/JPY cross is currently consolidating the upside as we head into the mid-European session, receiving double booster shot from strong gains seen in both the EUR/USD and USD/JPY.

EUR/JPY: 124 handle now inevitable

The EUR/JPY pair now advances +0.45% at 123.75, having posted fresh daily highs at 123.87 earlier this session. The cross in the EUR/JPY remains strongly bid as markets cheer the rebound in the European equities and take the yield advantage, giving up safe-havens such as the yen. Germany’s DAX jumps +0.75%, the UK’s FTSE rallies +1.27%, while the pan-European benchmark, the Euro Stoxx 50 advances +0.82%.

Further, stronger EUR/USD mainly driven by strengthening EUR/GBP cross amid profit-taking in the GBP longs, also collaborates to the upbeat sentiment around EUR/JPY. Later in NA session, the US existing home sales for April are expected to post 1.3% m/m growth to 5.40 million.

EUR/JPY Levels to consider

The pair has an immediate resistance at 124/124.18 (round number/ May 17 High) and from there to 124.36 (50-DMA). On the flip side, support is seen at 123/122.96 (round number/ May 18 low/) below which it could extend losses to towards 121.88 (May 9 Low).