FxWirePro: EUR/JPY struggles to extend bounce off 200-DMA, single currency depressed on U.S. tariff threat

EUR/JPY chart - Trading View 

EUR/JPY was trading largely muted at 120.41 at around 11:15 GMT after hitting session highs at 120.74 and lows at 120.03.

The pair is struggling to extend bounce off 200-DMA and back-to-back Doji formations on the daily charts dent scope for upside.

The single currency has ignored improved German Business Climate data and remains under pressure on possibility of U.S. tariffs on on EU, UK imports.

According to data released earlier today German IFO survey showed a further improvement in the Business Climate, this time climbing to 86.2 in June (from 79.7). But euro bulls unimpressed.

The gradual re-opening of economies in Europe and the ongoing monetary stimulus announced by the ECB, Germany and the European Commission could keep downside limited. 

Bias remains bullish as long as pair holds above 200-DMA. Price action hovers around 21-EMA. Some consolidation likely around current levels.

Major Support - 119.55 (200-DMA)

Major Resistance - 121.05 (20-DMA)