EUR/JPY advances toward 133.50 post- BOJ decision
- EUR/JPY trades cautiously in the Asian session.
- The Euro gains on the higher inflation data.
- Yen remains a non-performer on the submissive economic outlook
EUR/JPY accumulates minor gains on Friday in the Asian trading hours. The pair fell sharply from the high of 132.90 in the previous session to close near 131.20.
At the time of writing, EUR/JPY trades at 131.39, up 0.15% for the day.
The Eurozone Consumer Price Inflation rate climbed 2.0% in May from 1.6% in April. The reading is the highest since October 2018 and surpassed the central bank’s target. The Construction Output jumped 42.3% in April.
Meanwhile, ECB Chief Economist Philp Lane ruled out the possibility of taper talks in the September meeting. The comments emphasize the central bank’s cautious approach to monetary policy as there are still uncertainties lingering on the Eurozone’s economic outlook.
The shared currency gains were limited following the remarks from the key policymaker.
On the other hand, the Japanese yen posted some minor gains after the government decided to lift the COVID-19 restrictions in Tokyo and eight other provinces. The economy struggles to recover from the pandemic due to the slower vaccine rollout, despite the massive stimulus from the policymakers.
The Bank of Japan (BOJ) as widely expected kept its interest unchanged at -0.1% and maintained the target for the 10-year Japanese government bond yield at around 0%. The yen slid against the majors as an immediate reaction to the decision.
EUR/JPY additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
