Overall, EUR/JPY is trending upwards.
During the monetary policy meeting yesterday, the European Central Bank (ECB) kept its monetary policy unchanged. The central bank has also stated in the monetary policy statement that it “expects net purchases under the PEPP over the coming quarter to continue to be conducted at a significantly higher pace than during the first months of the year”. During the press conference, ECB President Lagarde mentioned that no discussions were made on exiting the Pandemic Emergency Purchase Programme (PEPP) as it is still premature to do so. Nonetheless, the central bank has revised its GDP projection upwards from 4% to 4.6% in 2021 and 4.1% to 4.7% in 2022. Inflation projection has also been revised upwards from 1.5% to 1.9% in 2021 and 1.2% to 1.5% in 2022.
Day 1 of the G7 meetings will be held today. During this time, there may be volatility in the market. Also, day 2 and 3 of the meetings will be held over the weekend.
EUR/JPY’s next support zone is at 132.800 and the next resistance zone is at 134.300.
Look for short-term buying opportunities of EUR/JPY.
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