The European Central Bank, as expected, kept interest rates as is and remains concerned that the euro-zone economy will continue to slow down and promises more stimulus if economic conditions worsen more than the current situation, especially if US trade wars continue. Therefore, the euro did not receive any support from the announcement of the bank because it confirmed what was announced in the past. Therefore, the EUR / JPY has stabilized around 125.34 at the time of writing the analysis.
The pair's daily chart shows attempts to correct the pair's upward correction, but in limited ranges due to weak investor confidence in the euro due to the slowdown of the Euro-Zone economy led by Germany. The pair did not take advantage of risk appetite well. In general, the weakness of the Japanese yen and risk appetite rather than the strength of the euro is what drives the pair to make gains. The continued decline in inflation levels along with the contraction of the industrial sector underscores the extent to which economic growth in the euro zone has slowed down due to the continuation of the US-China trade war, increasing investor confidence loss in the single currency.
European Central Bank President, Mario Draghi, announced that the ECB is ready to take further action to help the economy if expectations unexpectedly turn to the worst. Draghi said the bank would take "all necessary and appropriate monetary policy measures" in addition to the steps taken at its meeting on March 7, when it announced new cheap loans to banks and ruled out near rate hikes.
Technically: the EUR / JPY recently moved in an attempt to correct the upside move and will not succeed without the pair moving towards the psychological high of 130.00 and establishing above that and has currently reached the levels we expected in previous analyzes and the nearest resistance levels are currently 125.50, 126.65 and 127.30 respectively. On the downside, the nearest support levels are currently 124.75, 123.50 and 122.00 respectively.
In terms of economic data: the pair will be awaiting the announcement of German and French consumer prices. Any developments in the Japanese yen's safe haven will be watched if geopolitical concerns increase.