EUR/JPY remains in the hands of the bulls in higher end of the 120 handle

• EUR/JPY is elevated a the start of the week on surprise improvements in Chinese data.
• European Central Bank president Lagarde testifies before the European Parliament today.

Currencies were mostly restricted to familiar ranges on Friday while EUR/USD managed a move from 1.0981 (a two-month low) to 1.1028 as above-consensus data from the eurozone fulled a bid. EUR/JPY subsequently scored a high of 120.76, adding some 30 pips at its highest levels for the day. 

At the start of the week, EUR/JPY is elevated, headed towards the vicinity of last week's closing highs while the yen gives some initial ground at the off in early Asia for the start of the month with risk appetite encouraged after Saturday's November China PMIs showed clear improvement.

Ahead of today's sole scheduled event in China's unofficial manufacturing PMI (Markit, sponsored by Caixin) for November, China’s manufacturing PMI recorded its first expansionary print in six-months, breaking marginally above the benchmark 50-level to 50.2 in November and the non-manufacturing PMI similarly beat surveyed expectations, coming in at 54.4 in November (up from 52.8 in the month prior) whilst the composite PMI was up to 53.7. This is a bullish catalyst for the start to the week. 

ECB in focus, a weight on the euro

Meanwhile, European Central Bank president Lagarde testifies before the European Parliament today which could bring some insight as parliamentarians have a chance to quiz her and plough into some meaningful monetary policy substance. All in all, the euro can remain fragile as Europe's economy likely continues to be burdened by low inflation and weaker economic development – there is a calling for the region's governments to add fiscal stimulus. Indeed, the European Central Bank eased again recently and announced a larger stimulus package with a re-introduction of bond purchases, albeit at a more modest pace than before. 

EUR/JPY levels