EUR\/JPY edged up near 186.20 on Wednesday, with the yen staying under pressure close to multi-decade lows while the euro held steady ahead of the European Central Bank decision. The ECB is expected to keep the Main Refinancing Operations Rate at 2.40% and the Deposit Facility Rate at 2.25%, after lifting its three key rates by 25 basis points in June. Eurozone Consumer Confidence is projected to improve to -16.8 in July from -17.7, which would sit alongside the policy message as the next near-term driver for the single currency.<\/p>\n
The ECB is expected to keep the Main Refinancing Operations Rate at 2.40% and the Deposit Facility Rate at 2.25%, after lifting its three key rates by 25 basis points in June. Eurozone Consumer Confidence is projected to improve to -16.8 in July from -17.7, which would sit alongside the policy message as the next near-term driver for the single currency.<\/p>\n
Japan\u2019s focus shifts to Friday\u2019s June CPI release. Core CPI excluding fresh food is forecast to rise to 1.6% year-on-year from 1.4%, while the prior headline inflation reading was 1.5% and CPI excluding food and energy came in at 1.8%. On the 4-hour chart, the pair was at 186.17, holding above the 20-period SMA at 185.83 and the 100-period SMA at 185.32, with nearby levels clustered between 185.91 and 186.07; RSI was 63. Resistance sits at 186.19, while support is seen at 186.07\u2013186.04, then 185.91, 185.83, 185.32 and lower levels at 184.06, 183.82 and 183.67.<\/p>\n\n\n\n