EUR/JPY chart - Trading View
EUR/JPY has edged higher from session lows at 115.95 and was trading 0.05% higher at 116.37 at around 07:20 GMT.
Markets wary that an early release from lockdown in some countries could lead to a second wave of the virus hitting some nations.
With Germany’s covid-19 reproduction rate, R, now at 1.07, chances are high that the German government may have to reintroduce lockdown measures in order to push this back lower.
Rising risk off amid escalating U.S.-China trade tensions and renewed pandemic worries keep the yen supported and can cap upside.
Technical indicators have turned slightly bullish. Stochs have rolled over from oversold levels and 5-DMA has turned North.
Price action has bounced off 200H MA support and is currently testing resistance at 21-EMA (116.43).
Breakout at 21-EMA will see further gains. Next major hurdle lies at 55-EMA at 117.62. Rejection at 21-EMA will negate bullish bias.
