Today markets got ECB decision on interest rates. There were no surprises and as expected interest rates remained unchanged. However, during ECB conference, President Mario Draghi was very dovish. Due to the fact that inflation is far from the target of the ECB, further reduction of interest rates and changes in the QE (further money printing) cannot be excluded.
Speech by ECB governor automatically affected euro currency pairs. EURJPY which was appreciating since last month, decreased. Lower limit of upward channel was broken. Price also broke below the first important support at 135.00. Falls so far have been stopped at the next support 134.35. If the rebound will be strong next resistances levels are 135.00 and 135.45. However, in connection with the activities of the ECB ,continuation of falls after a rebound is more likely. If today’s minimum will be broken, further supports are on levels 133.10, 132.20.
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