EUR/JPY faces barricades around 143.30 despite weak Japan’s Unemployment data
- EUR/JPY is sensing resistance around 143.30 despite an improvement in Japan’s jobless rate to 2.6%.
- The economy has recorded higher employment opportunities amid ongoing prudent monetary policy.
- The shared currency bulls are worried over higher forecasts for eurozone HICP data.
The EUR/JPY pair is sensing barricades around 143.30 despite the increment in Japan’s Unemployment Rate. The Statistics Bureau of Japan has reported the jobless rate at 2.6%, higher than the estimates and the prior print of 2.5%. Moving further, the Jobs/Applicants ratio has improved to 1.24, higher than the former print of 1.23 but in line with the consensus of 1.24.
Rising job opportunities in the Japanese economy indicate that the prudent monetary policy adopted by the Bank of Japan (BOJ) is generating employment. The availability of cheap money in the economy is delighting the corporate sector to invest vigorously. Also, the rising exports by the economy amid the weak Japanese yen are supporting the labor market. Meanwhile, Japan's tax revenue in FY2021 reached a record 67 trillion yen - Nikkei. Higher tax revenue by the economy may support the yen bulls going further.
On the eurozone front, the shared currency bulls are awaiting the release of the Harmonized Index of Consumer Prices (HICP). As per the estimates, the annual inflation rate may improve to 8.3% from the prior figure of 8.1%. In this context, European Central Bank (ECB) President Christine Lagarde stated that the odds of returning to a lower inflation environment despite a spree of rate hike announcements are extremely lower.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
