Global macro analysis for 27/04/2017:

As widely expected the European Central Bank has left the key interest rates unchanged at the level of 0.0%. The Asset Purchase Target has been reduced from 80B to 60B Euro, but Marginal Lending Facility and Deposit Facility Rate were both left unchanged. In the statement, released just after interest rate decision, the ECB said, that it sees QE running until end-December or beyond if needed and see rates at present or lower level past QE horizon. Moreover, the net purchases will be made alongside reinvestments and QE will be active until inflation is on a sustained path towards the aim. In conclusion, a slightly dovish tone from the ECB statement that leaves no room for any hawkish or bullish commentary.

Let's now take a look at the EUR/JPY technical picture at the H4 timeframe. The bulls have managed to break out above the golden trend line and left the weekend gap unfilled between the levels of 117.14 - 118.90. Currently, the trading conditions are overbought, but so far the market is consolidating the gains around the level of 112.35. The next technical resistance is seen at the level of 121.98 and the next technical support is seen at the level of 120.89.