Yesterday, ECB president Mario Draghi showed his belief in the effectiveness of QE in his statement yesterday, weighing down the Euro. The closing price of EUR/JPY was lower than the open price of 129.441 JPY by 0.8%
On 10th March, EUR/JPY broke through the support level of 130.131 in January.
Similar to ECB, Bank of Japan (BoJ) also maintained low interest rate to create momentums for the economy (On 5th March, BoJ implemented quantitative easing by lower core interest rate from 0.1% to 0%-0.1%).
At 10:10 GMT+7, EUR/JPY went down by 0.2% from its open price (128.125 JPY). The currency pair is expected to reach the support level of 126.834 in 11/2009.
ECB and BoJ both launched quantitative easing measures, which is likely to push down the EUR/JPY further in the near future. The market is waiting for signals from the BoJ in the policy meeting on 17th March.