FxWirePro: EUR/JPY extends previous session's spike, euro bid ahead of German ZEW sentiment index

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.34% higher at 117.49 at around 06:45 GMT, bias bullish.

The pair is extending previous session's spike, closed 1.10% higher on Monday's trade.

The single currency remains bid on Franco-German proposal for a recovery fund. 

German Chancellor Merkel and French President Macron announced a recovery fund of around 500 billion euros for the recovery from the coronavirus crisis. 

Price action has broken above 21-EMA and momentum has turned bullish. Stochs and RSI are biased higher and RSI has edged above the 50 mark.

Volatility is rising and minor trend as evidenced by the GMMA indicator is strongly bullish.

The pair is now trading above 55-EMA (117.42) and is on track to test next major resistance at 118.45 (110-EMA).

Continued bullish momentum could see test of 61.8% Fib retracement at 119.36. Bullish invalidation only below 21-EMA.

Support levels - 117.42 (55-EMA), 116.45 (21-EMA), 116.13 (20-DMA)

Resistance levels - 117.63 (38.2% Fib), 118.45 (110-EMA), 119.63 (61.8% Fib)