EUR/JPY holds gains near 170.00 with eyes on ECB policy meeting


  • EUR/JPY exhibits strength ahead of the ECB’s policy decision.
  • The ECB is expected to announce a dovish decision but will not commit subsequent rate cuts.
  • BoJ Ueda emphasizes reducing bond purchases in a manner to exit from an expansionary policy stance.

The EUR/JPY pair clings to gains near the psychological resistance of 170.00 in Thursday’s European session. The cross holds onto strength ahead of the European Central Bank’s (ECB) monetary policy announcement at 12:15 GMT.

The ECB is expected to cut its Deposit Facility Rate by 25 basis points (bps) to 3.75%. A rate-cut move by the ECB in June’s meeting appears to be a done deal, as several ECB officials have already communicated. However, the attention of investors will be on the interest-rate outlook. The ECB is expected to state that they intend to remain data-dependent and prefer not to commit to any specific interest-rate path as the battle against inflation has not been won yet.

The reasoning behind abstaining from committing subsequent rate cuts is the higher-than-expected increase in the annual Eurozone’s Harmonized Index of Consumer Prices (HICP) data for May and the return of the old continent to growth after a shallow recession in the second half of 2023.

A slew of ECB policymakers have also warned that premature rate cuts could revamp price pressures again and will offset efforts yet made to bring inflation down to its current levels.

On the economic front, German Factory Orders for April unexpectedly contracted by 0.2%. The economic data declined for the fourth straight time. Investors anticipated them to have grown by 0.3%. Annually, Industrial Orders contracted by 1.6%.

Meanwhile, the Japanese Yen weakened after Bank of Japan (BoJ) Governor Kazuo Ueda commented that inflation expectations are gradually rising but have yet to reach 2%, Reuters reported. Ueda emphasized on reducing bond purchases in a manner to move forward towards their agenda of exiting expansionary policy stance.

Over the policy outlook, BoJ board member Toyoaki Nakamura advised that the current policy framework is appropriate for now as households' purchasing power is weak. Therefore, a solid increase in disposable income is necessary to encourage spending.

EUR/JPY

Overview
Today last price 169.82
Today Daily Change 0.15
Today Daily Change % 0.09
Today daily open 169.67
 
Trends
Daily SMA20 169.44
Daily SMA50 166.84
Daily SMA100 164.31
Daily SMA200 161.5
 
Levels
Previous Daily High 170.02
Previous Daily Low 168.4
Previous Weekly High 170.8
Previous Weekly Low 169.07
Previous Monthly High 170.8
Previous Monthly Low 164.02
Daily Fibonacci 38.2% 169.4
Daily Fibonacci 61.8% 169.02
Daily Pivot Point S1 168.71
Daily Pivot Point S2 167.75
Daily Pivot Point S3 167.1
Daily Pivot Point R1 170.32
Daily Pivot Point R2 170.98
Daily Pivot Point R3 171.94

 

 

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.

Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
XM
Read review
Moneta Markets
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds firm near 1.1100 ahead of US NFP, Powell

EUR/USD holds firm near 1.1100 ahead of US NFP, Powell

EUR/USD is holding ground near 1.1100 in the early European morning on Friday. Recession fears due to a global trade war lft Fed rate cut expectations, exacerbating the US Dollar's pain while keeping the pair afloat. Traders look to the US NFP report and Fed Chair Powell's speech for fresh directives.  

EUR/USD News
GBP/USD retakes 1.3100 as US NFP data looms

GBP/USD retakes 1.3100 as US NFP data looms

GBP/USD is defending minor bids above 1.3100 in early Europe on Friday. Persistent US Dollar weakness on recession fears and dovish Fed expectations underpin the pair as traders look forward to the US payrolls data and Fed Chair Powell speech for placing fresh bets. 

GBP/USD News
Gold price hovers near $3,100; bullish bias remains ahead of US NFP report

Gold price hovers near $3,100; bullish bias remains ahead of US NFP report

Gold price meets with a fresh supply on Friday, though the downside potential seems limited. Trump’s tariffs-inspired risk-off mood might continue to act as a tailwind for the precious metal. Fed rate cut bets weigh on the USD and should contribute to limiting losses for the XAU/USD pair.

Gold News
XRP finds new lifeline as Coinbase Derivatives eyes XRP futures on April 21

XRP finds new lifeline as Coinbase Derivatives eyes XRP futures on April 21

Ripple price reclaims the $2.00 support level and trades at $2.06 at the time of writing on Friday in the wake of a drawdown to $1.96 during Thursday’s session. Traders continue to exercise caution after Trump’s tariffs hit 100 countries, as per a CryptoQuant report.

Read more
Trump’s “Liberation Day” tariffs on the way

Trump’s “Liberation Day” tariffs on the way

United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs. 

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025