EUR/JPY chart - Trading View
EUR/JPY was trading largely rangebound on the day with session high at 124.69 and low at 124.49.
The pair was consolidating previous session's gains, after closing a massive 0.95% higher on Monday's trade.
Widening of the US-German 10-year bond yield spread keeps upside in check. On Monday, the spread increased by ten basis points to 1.30, the highest level since March 20.
Rising yield spreads could add pressure on the European Central Bank to provide more easing with the declining inflation trend.
Markets await speech by ECB President Christine Lagarde, with focus on yield differentials. Risk sentiment to have a major impact on price moves.
Lagarde may drop hints of additional easing which could add pressure on the single currency.
Technical bias for the pair is bullish. Stochs and RSI are biased higher. Pair has paused at 50-DMA resistance at 124.81.
Break above 50-DMA to see further upside. Next major resistance lies at 200W MA at 125.16. Decisive break above required for upside continuation.
On the flipside, 110-EMA is strong support at 122.87. Retrace below will negate any bullish bias.
