FxWirePro: EUR/JPY holds above 200H MA, focus on German CPI data for further impetus

EUR/JPY chart - Trading View 

EUR/JPY was extending gains above 21-EMA, was trading 0.14% higher at 120.42 at around 03:50 GMT.

Soaring coronavirus cases across the globe, triggering concerns about a possible economic recovery keep sentiment low.

On the other side, a Covid-19 vaccine from China which showed positive results in initial human trials keeps hopes alive.

The pair is holding above 200H MA and 'Dragonfly Doji' formation on Friday's candle raises scope for upside.

Major trend as evidenced by the GMMA indicator is bullish. RSI is above 50 and Stochs are showing a rollover from oversold levels.

Scope for upside resumption. Test of next major hurdle at 20-DMA at 121.16 likely. Bullish invalidation below 200-DMA.

Focus on Eurozone Business Climate for June along with preliminary German inflation data for further impetus. 

Major Support: 119.56 (200-DMA); Major Resistance: 121.16 (20-DMA)

Summary: Upbeat German inflation data could boost upside in the pair. Further, encouraging vaccine news out of China could shake-off markets’ concerns about the second wave of coronavirus. Clear break above 21-EMA for the pair will see test of 121.16 (20-DMA) ahead of 122.30 (110W EMA).