FxWirePro: EUR/JPY breaks 7-day bearish streak, spikes higher as euro buoyed on upbeat German ZEW Economic Sentiment Index

EUR/JPY chart - Trading View 

EUR/JPY spiked higher on the day and was trading 0.75% higher at 126.11 at around 10:15 GMT.

The single currency buoyed as risk sentiment recovers and German ZEW Economic Sentiment Index beat estimates.

Data released earlier today showed German ZEW headline Economic Sentiment Index improved to 61.8, beating estimates at 60.0 and above prior reading of 55.0.

Details of the report showed the sub-index Current Conditions figure arrived at -66.4 in Jan versus -68.5 expected and -66.5 prior. 

Further, the Eurozone ZEW Economic Sentiment for Jan unexpectedly rose to 58.3 vs. 45.5 expected and 54.4 last.

Additionally, Eurozone finance ministers renewed push for fiscal support for their economies, in order to boost the post-pandemic recovery plans, also renders supportive for the riskier assets.

EUR/JPY has broken a 7-day bearish streak and has retraced dip below 55-EMA. The pair is now testing 21-EMA at 126.16.

Major trend is bullish and bounce off 200W MA has raised scope for further upside. The pair has also held support at daily cloud.

Decisive break above 21-EMA will see further upside. Stochs are on verge of bullish rollover from oversold levels.

Next bull target lies at 61.8% Fib at 128.67. Bullish invalidation only below 200W MA.