EUR/JPY has shed 15 pips thus far, but.....>

EURO-YEN: EUR/JPY has shed 15 pips thus far, but struggles to punch through

yesterday's low. The rate last sits at Y116.49, with participants awaiting the

outcome of EU leaders' video call re: coordinated policy response to the

coronavirus crisis, scheduled for 15:00 Brussels time. The traditional

North-South divide is alive and well in the European Council re: issuance of

joint debt, with the press circulating reports pointing to various compromise

proposals.

- Meanwhile, the ECB decided to accept junk-rated bonds as collateral for its

loans to banks, given that held investment grade on Apr 7. The move anticipates

possible downgrades to credit ratings of more vulnerable Eurozone economies,

with S&P due to release its update on Italy's score on Friday.

- Bears look for a fall under Apr 21 low of Y116.22, towards the key support

located at Y116.13, the low of Mar 9. Bulls keep an eye on Y117.50, Apr 16 high.

The key near-term resistance is defined at Apr 14 high of Y117.94.

- Highlights on the regional docket towards the end of this week include a slew

of flash PMI Surveys from across the EZ (today) and German Ifo Survey (Friday).