EUR/JPY rallied sharply yesterday,.........>

EURO-YEN: EUR/JPY rallied sharply yesterday, threatening to breach the Y124.00

figure. The move was fuelled by a positive market reception of the ECB's

monetary policy decision, with policymakers decided to hike its PEPP programme

by EUR600bn and extended the duration of purchases well into 2021. The rate

pulled back shortly after the initial uptick as DJ circulated a report re:

potential U.S. action against some of the Chinese media outlets, but this

corrective move was followed by a strong rebound into the WMR fix.

- Speaking with France 2 television, ECB President Lagarde said that "today we

are at the lowest point of the crisis" and noted that economic activity has been

picking up.

- EUR/JPY trades flat at Y123.71 at typing and bulls look for a break above Jun

4/round figure of Y123.97/124.00. A break here would open up May 7, 2019 high of

Y124.25. Bears see Jun 3 low of Y121.27 as their initial target, followed by Mar

25 high of Y121.15.

- German factory orders, Italian retail sales and Spanish CPI take focus in the

Eurozone today.