Forex

Yesterday, the European Central Bank (ECB) held interest rates unchanged at 0.00% and kept the monetary policy at status quo. During the press conference, ECB President Lagarde highlighted that the economic contraction for second quarter is broadly in line with forecast.   The eurozone Final CPI y/y data will be released later at 1700 (SGT). - Final CPI y/y (Forecast: 0.3%, Previous: 0.3%) - Final Core CPI y/y (Forecast: 0.8%, Previous: 0.8%)   Leaders of the 27 EU nations will be meeting today and tomorrow in Brussels to discuss on the 750 billion euros in grants and loans set aside to help ease the impact of COVID-19. They will also be discussing about the 2021-2027 budget proposal. During this time, volatility in EUR is expected.   Currently, EUR/JPY is testing to break below the key level of 122. Its next support zone is at 121.700 and the next resistance zone is at 124.200. If EUR/JPY fails to break below the key level of 122, look for short-term buying opportunities of EUR/JPY.