FxWirePro: EUR/JPY upside gathers steam, pair set to extend gains above 122 handle
EUR/JPY chart - Trading View
EUR/JPY upside gathering steam. Periphery-German bond yields slide which bodes well for EUR upside.
The spread between the 10-year Greek and German government bond yields fell to 1.53 on Wednesday to hit multi-month lows.
Also, the spread between the Italian and German 10-year bond yield also slipped to 4.5-month lows.
EUR/JPY hit weekly highs at 121.968 before paring some gains to trade at 121.61 at around 08:15 GMT.
Price action has bounced off major trendline and 21-EMA support to grind higher. Momentum bullish.
Major and minor trend as evidenced by the GMMA is bullish. Volatility is high and rising. Next major hurdle aligns at 110W EMA at 122.299.
Clear break above 110W EMA to fuel further upside. Scope then for test of 200W MA at 124.63.