Eurjpy Moves On Jpy Supply

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Eurjpy Moves On Jpy Supply

Eur/Jpy Moves To 163.00 On Jpy Supply

EUR/JPY has almost gained 130 pips during the Asian session from the lows near 161.70. As of now, EUR/JPY is trading at intraday highs, which is a sign that the Japanese Yen is going through a wave of intense selling.

The trading price of the EUR/JPY cross is close to 163.00, with a bullish bias. It seems that the cross is now developing higher after staging a stellar recovery from the weekly lows.

Big news from Japan is the reason behind the JPY selling seen in the EUR/JPY cross. Japan's Prime Minister recently announced his decision to step down. This is a big change and could affect the BoJ's plan to lift the rates from historic lows.

Equity Markets Enjoy Improved Sentiment

Additionally, the sentiment for the share market has improved recently. So, that's also a factor that has led to the selling of the JPY as people are now less interested in safe-haven assets.

Looking ahead, big economic releases are scheduled from Japan which are expected to show an improvement in the macroeconomic situation. So, that's something that will make it easy for the BoJ to raise the rates again in 2024.

Meanwhile, the European Central Bank will likely adopt a more dovish tone in its next meetings. That's why we can expect the EUR/JPY to turn lower in the coming months.

The market is also full of rumors that the ECB will likely cut the rates once again as the Eurozone inflation shows a consistent downtrend. On top of that, the economic outlook of the Eurozone is also downbeat which warrants rate cuts from the ECB.

Recently, the comments from the Finnish central bank's chief along with ECB Rehn also reiterated the need for lowering the rates. So, the possibility of a rate cut in September 2024 by the ECB is now pretty high.

That's why it is safe to say a follow-through of the buying is needed to confirm the trend change in the EUR/JPY cross. Up ahead, the CPI print from the Eurozone will be closely watched as it can affect the Euro and, thus, the EUR/JPY cross.

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