The Bank Of England And The Bank Of Japan Maintain Interest Rates

After the European Central Bank and the US Federal Reserve meetings yesterday, the Bank of England (BoE) and the Bank of Japan meeting’s took place today.

The Bank of England decided to keep interest rates at the 0.1% level, ruling out the possibility of setting negative rates in the future as it foresees a strong recovery thanks to the vaccination rate that will boost the economy. Unlike in some European Union countries which halted the vaccination process, the United Kingdom fully trusts the AstraZeneca vaccine, although after the European Medicines Agency (EMA) meeting yesterday, this process will resume in the coming days for different member countries.

For its part, the Bank of Japan has once again decided to keep the interest rate level at -0.10%. After this meeting, the Central Bank of Japan announced a shift in its policy of purchases of exchange-traded funds by limiting these only to those listed in the Topix, causing a decrease of 1.41 of the Nikkei index during this day on Friday.

Technically speaking, and as we discussed in previous articles,  the Nikkei index has followed a clear upward trend since last March 2020 after marking minimums after the sharp falls at the beginning of the pandemic.

If we look at the daily chart, we can see how the price has been successively supporting its average of 18 sessions (black) until it reached 30,712.10 points on February 16, where a correction began that led it to reach the coefficient zone of the 61.8% retracement level and the green band that previously acted as resistance to the last lateral movement to subsequently carry out a new upward rebound.

Currently, its first support level is the 38.2% Fibonacci level and its 18-session black average. As long as we maintain this level, we can expect that the price can attack the maximum level again, although as long as it maintains its minimum of March 5, the long-term feeling will continue to be bullish, since the loss of that level could lead us to look for its uptrend line.

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