EUR/JPY stabilizes above 140.00 as BOJ’s intervention hangover fades, Japan’s job data eyed
|- EUR/JPY is comfortably established above 140.00 after hawkish guidance by ECB Lagarde.
- German energy market regulators are preparing stockpiles ahead of the winter season.
- Japan’s labor market data is expected to remain upbeat ahead.
The EUR/JPY pair has established above the psychological resistance of 140.00 as the risk-on market profile favored risk-sensitive currencies. The asset has turned sideways and is awaiting more market participants for making bullish bets. On Wednesday, the shared currency bulls rebound firmly after dropping to near 138.00. The cross delivered an upside break of the four-day long consolidation formed in a 137.38-139.53 range.
It seems that investors have shrugged-off uncertainty over the energy stockpiles ahead of the winter season, which soars the energy demand to run electrical appliances. Earlier, the Eurozone bulls were facing tremendous pressure after reporting a deliberate attack on the infrastructure of the Nord Stream 1 pipeline. German administration is preparing sufficient energy stockpiles ahead of the winter season and a decline in the same will deepen the energy crisis further.
Also, the speech from European Central Bank (ECB) President Christine Lagarde strengthened the shared continent bulls. ECB Lagarde sees rate hikes by 125 basis points (bps) in upcoming several meetings.
Going forward, investors will focus on the Eurozone Consumer Confidence data. As per the preliminary estimates, the sentiment data will remain steady at -28.8. It is worth noting that the economic data is getting more vulnerable over the past year.
On the Tokyo front, investors have shrugged off the impact of the Bank of Japan (BOJ)’s intervention in the currency markets to support the depreciating yen. The market participants believe that the impact of intervention remains short-lived, therefore, only restrictive measures could be a tailwind for the Japanese yen.
This week, the Japanese employment data will hog the limelight. The Unemployment Rate is expected to decline to 2.5% vs. the prior release of 2.6%. While the Jobs/Applicants Ratio will improve to 1.30 against the 1.29 reported earlier.
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