Chart of the Day EURJPY

<h2><span>Chart of the Day EURJPY</span></h2>
<p><strong>EURJPY &#8211; Probable Price Path</strong></p>
<p><span>Fragile market sentiments remained held at ransom by volatile crude oil price which rolled from the May to the June WTI futures contract which also fell below $10 barrel overnight before settling at $11.57 while Brent dipped below $20 per barrel. The US Senate passed a $484b to fund a $320b top up to the Paycheck Program as well as provide more healthcare funding. The S&amp;P500 fell 3.1% yesterday with VIX rising to 45.41, while longer-dated UST bonds rallied with the 10-year bond yield down to 0.57% on safe haven bids. Elsewhere, HKMA intervened in the HKD for the first time since October 2015 amid strong carry trade inflows, and Australia’s RBA is scaling back its daily bond purchase to three times a week from five as market conditions have improved and may not even purchase bonds depending on the three year government bond yield and market functioning. However, Mexico’s central bank unexpectedly slashed rates by 50bps to 6%, citing the sharp fall in oil prices, and said it will implement more measures to boost liquidity. </span><span>The ECB will hold a virtual call today to discuss accepting junk-rated debt collateral from lenders. Meanwhile, German ZEW current conditions collapsed from -43.1 to -91.5 while the expectations gauge rose to 28.2, whereas the Eurozone’s ZEW expectations gauge rebounded from -49.5 to +25.2.</span></p>
<p><img class="aligncenter size-full wp-image-42210" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-22-09.07.59.png" alt="" width="1635" height="1218" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-22-09.07.59.png 1635w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-22-09.07.59-300×223.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-22-09.07.59-1024×763.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-22-09.07.59-768×572.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-22-09.07.59-1536×1144.png 1536w" sizes="(max-width: 1635px) 100vw, 1635px" /></p>
<p><span>From a technical and trading perspective, EURJPY continues to test and defend the 116 area, yesterday the key reversal pattern flipped the daily chart bullish as per the near term volume weighted average price combined with momentum studies suggesting a near term loss of downside momentum. Prices have consolidated overnight within the upper half of yesterday&#8217;s range, bullish exposure should be rewarded on a breach of yesterday&#8217;s highs, this move would set an equality target towards 119 as highlighted in the chart. A breach of the overnight lows would negate the bullish thesis.</span></p>
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