EUR/JPY - indecision ahead of the ECB rate decision

• EUR/JPY holds above the 200-day moving average.
• Previous day's doji shows indecision in the marketplace.
• Focus on the ECB.

EUR/JPY holds above the 200-day MA, but created a "long-tailed" doji candle on Wednesday, highlighting indecision in the market ahead of the European Central Bank (ECB) rate decision.

As of writing, the pair is trading largely unchanged on the day at 131.60 and the 200-day moving average is seen at 131.42. A bullish follow-through (daily close above the Tuesday's high of 132.02) would add credence to yesterday's doji candle and open doors for a stronger rally.

Meanwhile, a bearish price action today would strengthen the bears. So, it is quite clear that today's price action would set the tone for the next move in the EUR/JPY cross.

That said, today's price action (bullish or bearish) largely depends on what the ECB President Draghi says during the press conference. Kathy Lien from BK Asset Management says Draghi will sound optimistic about the economy and that could put a bid under the common currency.

EUR/JPY Technical Levels

A break below the immediate support of 131.42 (200-day MA) would add credence to the retreat from the Asian session high of 131.83 and could yield a re-test of 131.17 (Nov. 20 low) and 130.93 (Feb. 23 low). On the higher side, a convincing break above 132.02 (Tuesday's high) would open up upside towards 132.47 (38.2% Fib R of Feb. 2 high - Mar. 5 low) and 133.02 (Jan. 11 low).