EUR/JPY remains capped below 161.00 following German CPI data

EUR/JPY trades weaker near 160.90 in Friday’s early European session.
The German Harmonized Index of Consumer Prices (HICP) rose 3.1% YoY in January, in line with market expectations.
The Japanese Yen was further weakened by dovish comments from Bank of Japan (BoJ) policymakers on Thursday.

Lallalit Srijandorn FXStreet

The EUR/JPY cross snap a two-day winning streak below the 161.00 psychological mark during the early European session on Friday. The cross attracts some intraday sellers following the German inflation data. Investors await German Buba President Nagel's speech later on Friday for fresh catalysts. At press time, EUR/JPY is trading at 160.90, down 0.02% on the day.

The latest data from the German statistics office Destatis on Friday showed that the German Harmonized Index of Consumer Prices (HICP) rose 3.1% YoY in January. This figure was in line with market expectations. On a monthly basis, the nation’s HICP dropped 0.2% MoM in January from a 0.2% decline in December. Additionally, the headline Consumer Price Index (CPI) came in at 0.2% MoM and 2.9% YoY in January.

European Central Bank (ECB) Governing Council member Martins Kazaks said investor hopes for monetary easing at one of the next two meetings might be too aggressive. Kazaks further stated that he will wait until the inflation story is over, and then he will consider rate cuts step by step. Meanwhile, ECB Chief Economist Philip Lane and ECB policymaker Pierre Wunsch said that they prefer to wait for more data before cutting rates.

On the other hand, the dovish remarks from the Japanese policymakers weigh on the Japanese Yen (JPY) and act as a tailwind for the EUR/JPY cross. The Bank of Japan (BoJ) Deputy Governor Shinichi Uchida said that the central bank will not hike aggressively upon ending negative rates, even after ending its negative interest rate policy. Furthermore, BoJ Governor Kazuo Ueda said on Friday that the possibilities are high for accommodative conditions to stay even if negative rates are abandoned.

Later on Friday, traders will monitor the Italian Industrial Output and German Buba President Nagel's speech. Next week, the Eurozone and Japan’s Gross Domestic Product (GDP) for the fourth quarter (Q4) will be released. Traders will find trading opportunities around the EUR/JPY cross.

EUR/JPY

Overview
Today last price	160.91
Today Daily Change	-0.02
Today Daily Change %	-0.01
Today daily open	160.93

Trends
Daily SMA20	160.15
Daily SMA50	158.4
Daily SMA100	159.07
Daily SMA200	156.95

Levels
Previous Daily High	161
Previous Daily Low	159.47
Previous Weekly High	160.84
Previous Weekly Low	158.08
Previous Monthly High	161.87
Previous Monthly Low	155.07
Daily Fibonacci 38.2%	160.41
Daily Fibonacci 61.8%	160.05
Daily Pivot Point S1	159.93
Daily Pivot Point S2	158.94
Daily Pivot Point S3	158.4
Daily Pivot Point R1	161.46
Daily Pivot Point R2	161.99
Daily Pivot Point R3	162.99

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

GBP/USD nudges higher above 1.3350 despite Middle East turmoil

The GBP/USD pair rebounds to near 1.3385 during the Asian trading hours on Thursday. However, the potential upside for the major pair might be limited amid cooler-than-expected UK inflation data and escalating tensions in the Middle East. Traders will take more cues from the UK Retail Sales report, which is due later on Friday.

EUR/USD stabilizes near 1.1400 as markets focus on geopolitics

EUR/USD trades in a narrow channel at around 1.1400 on Wednesday. In the absence of high-impact data releases, escalating geopolitical tensions in the Middle East caps the pair's upside. On Thursday, the European Central Bank (ECB) will announce monetary policy decisions.

Gold is at a critical juncture as Middle East conflict widens

Gold snaps a four-day recovery early Thursday as widening Mideast conflict-led rallying Oil prices spur inflation fears. The US Dollar stays defensive amid potential USD/JPY sell-off, as ‘Yenternvention’ risks loom. Gold at a crossroads, awaiting Bear Cross confirmation on the daily chart, as RSI flirts with 50.

Australia unemployment rate set to steady at 4.4% in June, signaling strong job market

Australia will publish the June monthly employment report on Thursday at 01:30 GMT, and market participants expect a modest increase in job creation in the land Down Under. The Australian Bureau of Statistics is expected to announce that the country added 15K new jobs in the month, while the Unemployment Rate is forecast at 4.4%, unchanged from May.

Senate Republicans release updated CLARITY Act with new crypto ethics restrictions

Senate Republicans released an updated version of the Digital Asset Market CLARITY Act on Wednesday following briefing calls with stakeholders. The update adds a package of ethics restrictions targeting digital asset activities by public officials and their spouses. The revised legislation comes after negotiations between the White House and Republican senators Cynthia Lummis and Bernie Moreno.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.