FxWirePro: EUR/JPY on track to test 88.6% Fib at 134.87

EUR/JPY chart - Trading View 

EUR/JPY was trading largely unchanged on the day at around 133.25 at 10:25 GMT.

The pair was rangebound on the day with session highs at 133.41 and lows at 133.13.

The pair has ignored a Gravestone Doji formation in the previous week's candle and has resumed upside above 200-month MA.

Bullish streak extends for the 7th straight month. Breakout above 200-month MA has opened upside.

The single currency boosted by the upbeat PMI data released last week. Upbeat German IFO data for May adds to the upside bias.

Stronger economic data in the Eurozone improved the risk appetite and drove market participants towards riskier assets. 

On the other side, the Japanese government slashed its economic view for the first time in three months, weighing on the yen.

Japan ruling party heavyweight calls for $239 billion extra budget to support the economy. This extra push on the BOJ for easy policy likely to drive the JPY weaker.

Momentum studies are bullish. Price action is extending gains above 78.6% Fib and is on track to test 88.6% Fib at 134.87.