EUR/JPY attracts some sellers below the mid-163.00s, Eurozone PMI data looms


  • EUR/JPY loses momentum around 163.22 following the rise in Japanese CPI inflation data. 
  • The Tokyo CPI climbed 2.6% YoY in February vs. 1.6% prior. 
  • The ECB is anticipated to hold the rate steady at 4.5% at its March meeting on Thursday.

The EUR/JPY cross loses ground below the mid-163.00s during the early European trading hours on Tuesday. The rise in the Tokyo Consumer Price Index (CPI) for February triggered speculation that the Bank of Japan (BoJ) will exit the negative interest rate regime in the coming month, which lifts the Japanese Yen (JPY) and weighs on the cross lower. EUR/USD currently trades near 163.22, down 0.10% on the day. 

Data released from the Statistics Bureau of Japan on Tuesday revealed that the Tokyo CPI climbed 2.6% YoY in February from 1.6% in January. Additionally, the CPI ex Fresh Food and Energy eased to 3.1% YoY in January from the previous reading of 3.3%. The rise in price growth above the central bank’s target in February supported the case for the BoJ’s first interest rate hike since 2007. This, in turn, boosts the JPY against its rivals. 

The BoJ board member Hajime Takata hinted at a potential early move by the central bank to abandon its negative interest rate. He stated that the price aim was now within reach and it would be appropriate to change the monetary policy stance. Nonetheless, BoJ Governor Kazuo Ueda delivered a cautious view, saying that he would evaluate more data in order to confirm that a virtuous wage-price cycle is emerging.

On the Euro front, the European Central Bank (ECB) is expected to keep the main refinancing rate steady at 4.5% at its March meeting on Thursday. ECB President Christine Lagarde said last week that disinflation would persist but the central bank needs more evidence data before lowering the interest rate. Investors will take more cues from the press conference. A less hawkish tone could exert some selling pressure on the Euro (EUR) and create a headwind for the EUR/JPY cross. 

Later on Tuesday, the HCOB PMI data from Spain, Italy, France, Germany, and the Eurozone will be due. The Eurozone Retail Sales will be released on Wednesday. Market players will closely monitor the ECB rate decision on Thursday. These events could give a clear direction to the EUR/JPY cross. 

 

EUR/JPY

Overview
Today last price 163.24
Today Daily Change -0.16
Today Daily Change % -0.10
Today daily open 163.4
 
Trends
Daily SMA20 161.92
Daily SMA50 160.16
Daily SMA100 159.9
Daily SMA200 158.09
 
Levels
Previous Daily High 163.52
Previous Daily Low 162.54
Previous Weekly High 163.72
Previous Weekly Low 161.68
Previous Monthly High 163.72
Previous Monthly Low 158.08
Daily Fibonacci 38.2% 163.15
Daily Fibonacci 61.8% 162.91
Daily Pivot Point S1 162.78
Daily Pivot Point S2 162.17
Daily Pivot Point S3 161.8
Daily Pivot Point R1 163.77
Daily Pivot Point R2 164.13
Daily Pivot Point R3 164.75

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD struggles below 0.6300 amid trade war fears

AUD/USD struggles below 0.6300 amid trade war fears

AUD/USD remains defensive below the 0.6300 mark in Thursday's Asian trading. The pair is undermined by increased concerns over a potential global trade war as US reciprocal tariffs could come by later in the day. Rising Australian inflation expectations and US Dollar weakness cap the pair's downside. 

AUD/USD News
USD/JPY rebounds toward 155.00 despite stronger Japanese PPI

USD/JPY rebounds toward 155.00 despite stronger Japanese PPI

USD/JPY reverses a dip and heads back toward 155.00 in the Asian session on Thursday. The pair fails to benefit from a stronger Japanese PPI print, which reaffirmed BoJ rate hike bets. The pair shrugs off a subdued US Dollar amid trade war fears and hawish Fed expectations. 

USD/JPY News
Gold price holds steady near $2,900, eyes all-time peak

Gold price holds steady near $2,900, eyes all-time peak

Gold price looks to build on the previous day's bounce from the post-US CPI trough as Trump-related anxieties and geopolitical risks underpin traditional safe-haven assets. Moreover, a softer USD is seen lending support to the bullion, though reduced Fed rate cut bets and a positive risk tone cap gains.

Gold News
Bitcoin and crypto recovers from CPI data as Trump pushes Russia–Ukraine diplomacy

Bitcoin and crypto recovers from CPI data as Trump pushes Russia–Ukraine diplomacy

Bitcoin and the crypto market saw slight gains on Wednesday after President Donald Trump's resolution calls with Russian President Vladimir Putin and Ukraine's President Volodymyr Zelenskyy. 

Read more
How the European Union could counter US tariffs

How the European Union could counter US tariffs

With Trump ordering a 25% import tax on all steel and aluminium entering the US, trade tensions are inching closer to Europe. We take a closer look at how European policymakers could react. Spoiler alert: it's complicated.

Read more
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025