The euro struck a two-month high against the yen and stayed within reach of an 11-week high against the dollar on Wednesday, as markets stayed in risk-on mode on robust European bank earnings and solid economic data.
Risk sentiment had been boosted on Tuesday as European shares hit a five-week closing high, and as the euro zone bank stress tests provide a stream of passing grades for regional banks. Germany's GfK consumer sentiment report also gave much higher-than-expected results yesterday, helping to boost the euro.
Technical analysts said the picture was becoming bullish, as the EUR/JPY continued to make gains indicated by various technical indicators. A number of analysts have placed the next primary target of this currency pair near 117.50.