There's not much in terms of headlines driving the move as we get into European trading, with the pair now nudging higher to 136.80 levels. It looks just like a further technical extension as buyers are moving towards testing the 200-day moving average (blue line) at 137.04 currently.
That remains a key level in terms of limiting gains, alongside the March and early May highs around the 137.77-90 region. Or if you want to put it, a resistance region just under the 138.00 mark.
Buyers will have to push past that in order to open up space towards 140.00 next. Otherwise, another failure could keep sellers interested to chase a break lower.
While there was a bit of a break in correlation to bond yields after the BOJ policy decision at the end of last month, that has corrected itself already more or less recently:
As such, the developments in the bond market will also be a key factor to watch in gauging price action for the pair in the sessions ahead.
