EUR/JPY hangs near 2-week lows, around mid-121.00s ahead of Lagarde's press conference

• The ECB policy decision turned out to be a non-event for the market.
• Focus on details of the strategic review, post-meeting press conference.

The EUR/JPY cross maintained its offered tone, around mid-121.00s post-ECB announcement and remained well within the striking distance of two-week lows set earlier this Thursday.

As was widely expected, the European Central Bank (ECB) left policy rates unchanged at its first meeting of 2020 held this Thursday and reiterated to hold rates at present or lower levels until inflation outlook robustly converges to target.

The ECB also announced the strategic review of the central bank’s monetary policy and hence, the key focus will remain on the details. Investors will also keep a close eye on the ECB President Christine Lagarde's comments at the post-meeting press conference.

Lagarde might provide some worthwhile hints about the future policy moves, which should be enough to provide a meaningful impetus to the shared currency and produce some meaningful trading opportunities around the cross.

Meanwhile, the prevailing cautious mood around the global financial markets – amid concerns of coronavirus outbreak in China – might continue to underpin the Japanese yen's perceived safe-haven demand and keep a lid on any attempted recovery move.

Technical levels to watch