EUR / JPY remains close in the 130.00 zone before the ECB

• EUR / JPY validates recent rebound from three-month lows.
• Eyes on the first ECB meeting with the new monetary policy strategy.
• Yen weakens on rising stocks and bond yields.

The EUR / JPY is trading around the 130.00 zone on Thursday, without significant changes with respect to Wednesday’s closing, prior to the decision of the European Central Bank (ECB).

The price is stable, between 130.15 and 129.90 for hours. The bias is still bullish, although the rebound has already led to overbought levels in the very short term. To see a prolongation of the rise of the euro, there should be a break of 130.20. To the downside, support can be seen at 129.80 and then 129.55.

Eyes on the ECB

At 11:45 GMT, the ECB will announce its monetary policy decision. No changes in the interest rate are expected, nor new measures. Where it is considered that there will be news is in the statement and in the orientation towards the future, since it was anticipated by Lagarde and it is also the first meeting after the strategic review, where the symmetric objective of 2% inflation was established.

The decision, and the subsequent press conference, is expected to have an impact on the euro. Regarding the yen, Thursday continues with some weakness, given the maintenance of the recovery of the stock markets and the yields of the Treasury bonds.

The Dow Jones, after sessions with important rises, is already close to the record highs, supported in part by corporate results. When it comes to yields, the 10-year Treasury rate hit 1.30% on Thursday, after falling to 1.12% days ago. Both events play against the yen and if they persist they could continue to support the EUR / JPY.

Technical levels