EUR/JPY bounces back from 170.00 with German Inflation in focus

Source Fxstreet
May 29, 2024 11:02
  • EUR/JPY rebounds after a steep fall that was influenced by BoJ Adach’s support for a reduction in BoJ’s bond-buying.
  • The uncertainty over BoJ’s wage growth outlook has limited the scope of further policy tightening.
  • German inflation data will impact market speculation for ECB rate cuts beyond June.

The EUR/JPY recovers the dip to near 170.20 that was influenced by Bank of Japan (BoJ) board member Seiji Adachi’s commentary on the monetary policy outlook. BoJ Adachi advocated for reducing bond buying in several stages so that long-term yields better serve as a market signal. However, Adachi didn't provide any timeline for the same.

Over the interest rate outlook, Adachi commented that it would be appropriate to adjust interest rates at a slow pace if underlying inflation steadily moves toward 2%. Adachi’s dovish commentary on the interest rate outlook has deepened uncertainty about the BoJ extending the policy-tightening.

Market participants believe that inflationary pressures in Japan are driven by weak Japanese Yen while a move to higher interest rates should be backed by confidence in prolong wage growth that prompts consumer spendings and boosts price index.

This week, the Japanese Yen will be guided by the Tokyo Consumer Price Index (CPI) for May and the Retail Trade data for April, which will be published on Friday.

Meanwhile, the Euro is under pressure ahead of the preliminary German CPI data for May, which will be published at 12:00 GMT. Economists expect that the annual Harmonized Index of Consumer Prices (HICP) accelerated to 2.7% from the prior reading of 2.4%, with the monthly headline and harmonized inflation data grew at a slower pace of 0.2%.

The German inflation will significantly influence market speculation for European Central Bank (ECB) rate cuts. The ECB is widely anticipated to start reducing interest rates from the June meeting. Therefore, the impact of the German inflation will majorly on the ECB rate-cut path beyond June.

EUR/JPY

Overview
Today last price 170.55
Today Daily Change -0.10
Today Daily Change % -0.06
Today daily open 170.65
 
Trends
Daily SMA20 168.21
Daily SMA50 166.17
Daily SMA100 163.71
Daily SMA200 161.16
 
Levels
Previous Daily High 170.8
Previous Daily Low 170.29
Previous Weekly High 170.5
Previous Weekly Low 169.05
Previous Monthly High 171.6
Previous Monthly Low 162.28
Daily Fibonacci 38.2% 170.6
Daily Fibonacci 61.8% 170.48
Daily Pivot Point S1 170.36
Daily Pivot Point S2 170.07
Daily Pivot Point S3 169.85
Daily Pivot Point R1 170.87
Daily Pivot Point R2 171.09
Daily Pivot Point R3 171.38

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
What is SEI? Why did Binance, Coinbase, and OKX all list SEI coin simultaneously?Sei is a new Layer-1 public chain, and the launch of its token SEI can create new opportunities.
Author  Mitrade
Sei is a new Layer-1 public chain, and the launch of its token SEI can create new opportunities.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Japanese Yen stands tall near one-month top against USD on hawkish BoJ talksThe Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
Author  FXStreet
The Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
placeholder
Natural Gas faces upside pressure as European traders prepare for next heating seasonNatural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
Author  FXStreet
Natural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
goTop
quote