EUR/JPY Could Extend Rally As German-Japan Yield Spread Widens

Much has been said about the U.S. breaking out, and a lot of focus will be on that ahead of the FOMC decision tonight. But it is not just the U.S. where bond prices are slumping. Yields are rising across the major developed economies as this chart shows:

10-Year Government Bond Yields.

10-Year Government Bond Yields.
Source: TradingCandles.com and TradingView.com

Today, German 10-year yields are also breaking out of the triangle:

German 10-Year Yields.
Source: TradingCandles.com and TradingView.com 

This is causing the German-Japan 10-year yield spread to widen:

German-Japan 10-Year Yield Spread.

German-Japan 10-Year Yield Spread.
Source: TradingCandles.com and TradingView.com 

Given the rising German yields and the widening of the German-Japan yield spread, should be able to continue higher from the support area shown on the chart:

EUR/JYP Daily Chart.
Source: TradingCandles.com and TradingView.com 

We have had great success with the EUR/JPY for the private group in the past, for example THIS one:

EUR/JYP Hourly Chart.

Source: TradingCandles.com and TradingView.com 

This was an even better trade on EUR/JPY I provided for the private group in February:

EUR/JYP Hourly Chart.
EUR/JYP Daily Chart.
Source: TradingCandles.com and TradingView.com 

Let’s hope the good run of form continues for EUR/JPY and judging by the price action on the yield charts that’s how it is looking like at the moment.

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