EUR/JPY: risk on continues in Tokyo, eyes now for 123.00

Currently, EUR/JPY is trading at 121.56, up 0.14% on the day, having posted a daily high at 121.70 and low at 121.27.

• Market sentiment lifted overnight - ANZ

EUR/JPY remains better bid in Tokyo following a strong performance overnight for the euro. EUR/USD battered down the doors of the 1.09 handle after the cross rallied from 120.00 in London in a sell-off in the yen from 110.50's vs the greenback.  Risk sentiment continues to improve and the US stock market rallied forcing further bids in the cross and ceiling the deal for a test of the 11 handle in USD/JPY this Tokyo and to break the recent highs for the month in the cross.

EUR/JPY levels

EUR/JPY targets 123.00 in surpassing the Feb high of 122.87. to the downside, Analysts at Commerzbank expect, in the medium term, for the cross to still target the 112.62 October 2016 low and the 112.53 2012-2017 support line, which they look to hold and provoke reversal longer term, provided that no weekly close above the December high at 124.08 is made. "Longer term outlook is neutral to negative: The erosion of the 117.50/35 the 2016-2017 uptrend is negative and we look for losses to it's  112.53 5 year support line which is expected to hold and provoke a reversal."