Overall, EUR/JPY is trending downwards. Recently, EUR/JPY broke the resistance zone of 130.000.
During the monetary policy meeting yesterday, the European Central Bank (ECB) kept its monetary policy unchanged. However, during the press conference, President Lagarde highlighted that “risks to the inflation outlook are tilted to the upside”, indicating that the central bank is beginning to acknowledge inflation risk. As a result, euro strengthened across the board.
Currently, EUR/JPY is testing the resistance zone of 131.500 and the next support zone is at 130.000.
Look for short-term buying opportunities of EUR/JPY if it breaks the resistance zone of 131.500.