GBP/JPY & EUR/JPY Trading Levels – BOJ & ECB Monetary Policy In the Spotlight
Arslan Butt • 1 min read
Who’s ready for taking quick trades on the EUR/JPY and GBP/JPY? I hope you are because these forex pairs will be extremely volatile in the wake of interest rate decisions from the Bank of Japan and the European Central Bank.
Turning to FX Leaders’ weekly economic outlook, we discussed these two central banks’ meetings along with their potential outcomes.
ECB Monetary Policy
On Thursday, the European Central Bank will release its minimum bid rate at 11:45 (GMT) along with a press conference at 12:30 (GMT). The ECB is widely expected to keep their interest rate unchanged at 0.00%. However, Draghi’s press conference could move the euro. We need to see what Mario Draghi has to say about the bond-buying programs.
BOJ Monetary Policy
Likewise, the Bank of Japan is also likely to keep their policy rate unchanged at -0.10%. Moreover, the BOJ is also likely to continue buying bonds in order to keep the 10-year yield at 0%.
What makes these policies important, if both of the central bankers aren’t thinking of changing their rates? Well, it’s important to watch their press conferences to extract clues on future monetary policy developments and to drive trading sentiments on the euro and yen.
Let’s take a look at key support and resistance levels for these pairs.
EUR/JPY – Major Trading Levels
Key Trading Level: 133.09
GBP/JPY – Major Trading Levels
Key Trading Level: 152.1