EURJPY Back Near Intervention Levels with Data Ahead

The EURJPY exchange rate again traded at the previous intervention levels, with European data ahead. 

EURJPY – Daily Chart

EURJPY – Daily Chart 

EURJPY trades at 168.62, where the second BOJ intervention occurred, and investors should be wary of euro longs here. 

The Japanese economy will release data on Tuesday, with PPI numbers released at 7:50 a.m. HKT. That will be followed by German inflation at 2:00 p.m. HKT, when analysts expect the German price level to be flat for the month.  

Any significant move could come from higher Japanese PPI levels, increasing the chances of rate hikes from the Bank of Japan. 

However, any yen selling here would be risky as another intervention in the currency market is likely inevitable. BOJ officials were talking tough again last week about the yen’s weakness, but selling continues. The yen surged at the end of April and again on the first day of May after the BOJ intervened in the currency market. 

Bank of Japan Governor Kazuo Ueda indicated last week that he would consider early interest rate movement if inflation exceeded the central bank’s expectations. He spoke at an event with the Yomiuri International Economic Society, where Ueda acknowledged the possibility of higher inflation prompting monetary policy changes. 

Ueda said that if price expectations were significantly revised upward or potential inflation risks grew, the Bank of Japan would consider making appropriate early adjustments to interest rates.  

The Bank of Japan’s March decision to terminate unconventional easing measures, including negative interest rates, marked a shift in its policy approach due to changing economic conditions. Ueda said that although core inflation appears to be progressing towards the bank’s 2 percent target, uncertainties remain regarding the interest rate trajectory. 

Ueda noted again that the bank is vigilant to the impact of yen depreciation on core inflation, signalling a readiness to intervene through monetary policy measures if needed. He acknowledged that fluctuations in currency rates now have a more pronounced effect on prices than in previous periods. 

Other BOJ officials have stressed that a weaker yen puts pressure on businesses and will not be tolerated.

Recent News
Start Trading Now!

Try our demo account for free to learn trading. When you’re ready, switch to the live account and start trading for real.

Popular posts

ATFX

ATFX UK (AT Global Markets (UK) Ltd.) focuses on developing institutional business and professional investors and does not accept retail clients under its UK Financial Conduct Authority (FCA) license.

For professional client applications, please contact [email protected].

ATFX

🌍 Welcome to ATFX!

To provide you with the best trading experience in Iraq, please visit our localized website:

There, you’ll find all products, services, and contact information tailored specifically for you. Thank you for choosing ATFX!

ATFX

Restrictions on Use

Products and Services on this website https://www.atfx.com/en-ae/ are not suitable
in your country. Such information and materials should not be regarded as or
constitute a distribution, an offer, or a solicitation to buy or sell any investments.
Please visit https://www.atfx.com/en/ to proceed.

ATFX

使用限制

本网站的产品及服务不适合英国居民。网站内部的信息和素材不应被视为分销,要约,买入或卖出任何投资产品。请继续访问 https://www.atfx.com/en/

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not available for Hong Kong investors and not related to any corporation licensed by the Securities and Futures Commission in Hong Kong.

All the information and materials posted on this website should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制:本網站的產品及服務不適用於香港投資者及與任何香港證監會持牌公司無關。

網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://www.atfxconnect.com/