EUR/JPY staged a decent rally yesterday,...>

EURO-YEN: EUR/JPY staged a decent rally yesterday, fuelled by a cocktail of

positive signals re: research into Covid-19 vaccine & EU fiscal matters. The

single currency drew support from an agreement between German Cll'r Merkel and

French Pres Macron to support the creation of a debt-backed EUR500bn fund to

help the bloc face the economic crisis caused by the Covid-19 pandemic.

- Elsewhere, ECB Pres Lagarde told European newspapers that bond-buying

programmes will continue to run, despite the recent ruling of German

Constitutional Court, which gave the ECB three months to justify its QE scheme.

- The rate sits +3 pips at Y117.20. Further gains past the 50-DMA at Y117.45

would bring the key Apr 30 high of Y117.78 into view. Bears initially look for a

drop through May 14/11 lows of Y115.33/30.

- German ZEW Survey headlines regional docket today, ECB's Lane is due to speak.