EUR/JPY consolidates above key technical levels

EUR/JPY is holding above 122.00, a key technical level and is headed toward the highest daily close since March 10. 

Since the beginning of the week, the pair is moving with an upside bias. Yesterday it tested levels on top of 122.00 and today it rose clearly above. It peaked during the European session at 122.59 and then pulled back modestly. 

It is trading at 122.30/35, up for the third day in a row; confirming so far the break of the 122.00 area, that could clear the way to a rise toward 123.00. A weak yen has been boosting the pair since Monday. While EUR/USD continues to trade in a range between 1.0880 and 1.0925, USD/JPY jumped above 112.00, to the highest in 6 weeks. 

PMI, polls, and elections 

Today’s data in Europe included the final reading of the Eurozone PMI manufacturing that came in at 56.7 (below the flash estimate of 56.8). Tomorrow EZ Q1 GDP data is due. The key event will be the Federal Reserve decision that could trigger volatility across financial markets. 

On the Greek saga, the potential agreement for another package of the bailout is seen as something positive for the euro. Another factor supporting the euro, are polls, ahead of Sunday French elections, that continue to show Macron clearly ahead of Le Pen.