Overall, EUR/JPY is trending downwards. Recently, EUR/JPY bounced off the support zone of 128.800. The European Central Bank (ECB) will be announcing its monetary policy decision later.
The central bank is expected to keep its monetary policy unchanged during the meeting. Nonetheless, with the ever-rising inflation in the eurozone, pay attention to whether the ECB has adjusted its view on the interest rate hike timeline.
A press conference will also be held later. During this time, expect volatility in EUR. EUR/JPY’s next support zone is at 128.800 and the next resistance zone is at 130.000. Look for short-term buying opportunities.