EUR/JPY bulls in full control, eyeing a break through one-year highs

The EUR/JPY cross finally seems to have broken out of two-day old consolidation phase and jumped back to one-year high near 125.80 region. 

The latest upbeat Euro-zone economic data has boosted sentiment around the shared currency and with the EUR/USD major making its way back towards multi-month tops, the cross was seen building on to last week's sharp rebound from mid-122.00s. 

This coupled with an offered tone surrounding the Japanese Yen further collaborated to the pair's up-move back towards its highest level since late April 2016. However, a sharp reversal in the European equity markets was seen lending some support to the Japanese Yen and seems to be only factor capping further up-move, at least for the time being. 

Meanwhile, the cross breaking through one-year tops and extending its strong bullish momentum still remains a distinct possibility amid holiday thinned European session, with the Swiss, French and German markets closed in observance of Ascension Day.

Technical levels to watch

Momentum above 125.80 level, leading to a subsequent break through the 126.00 handle, now seems to pave way for extension of the pair's strong up-move further towards 126.35-45 hurdle (late April 2016 highs). 

On the flip side, retracement back below 125.40 level might continue to find some fresh buying interest near the key 125.00 psychological mark, which if broken might trigger a short-term corrective slide initially towards 124.40 intermediate support before the cross eventually drops back to sub-124.00 level towards testing its next support near 123.70-65 region.