和 carries the meaning of 'Japanese' and 洋 carries the meaning
of 'Western'. These words are often used as prefixes, together
with other Chinese character. Consider, for instance, the
following:
和室 (わしつ) vs. 洋室 (ようしつ) (Japanese style room vs. western style room)
和食 (わしょく) vs. 洋食 (ようしょく) (Japanese food vs. western food)
和服 (わふく) vs. 洋服 (ようふく) (Japanese clothes (i.e., Kimono) vs. western clothes)