Mild Bullish Bias Persists for EUR/JPY Above 164.00 Amid Intervention Concerns

EUR/JPY is showing a slight upward movement, hovering around 164.10 in Tuesday’s early European trading session. The Japanese Yen (JPY) has received some support due to verbal intervention from Japanese authorities, which could limit the potential gains of the EUR/JPY pair in the short term. Market participants are keenly awaiting March’s Tokyo Consumer Price Index (CPI) data, scheduled to be released on Friday. Currently, the cross is up by 0.01% for the day.

The Japanese Yen has weakened despite the Bank of Japan’s recent interest rate hike. However, Masato Kanda, Japan’s Vice Minister of Finance for International Affairs, remarks that addressing the yen’s excessive weakness has led to a slight recovery in the JPY, posing a challenge for EUR/JPY.

On the other hand, expectations of a rate cut by the European Central Bank (ECB) have increased following the Swiss National Bank’s recent decision to lower borrowing costs. ECB policymakers, including Fabio Panetta and Philip Lane, have hinted at the possibility of interest rate cuts due to rapidly falling inflation and slowing wage growth.

Upcoming economic indicators include the German Gfk Consumer Confidence Survey for April and ECB Chief Economist Philip Lane’s speech on Tuesday. Later in the week, market participants will focus on German Retail Sales data for February and the Tokyo CPI inflation figures for March.

EUR/JPY