EUR/JPY sticks to modest recovery gains amid notable JPY supply, remains below mid-158.00s

Source Fxstreet
  • EUR/JPY gains some positive traction on Monday amid the emergence of some JPY selling.
  • A downward revision of Japan’s Q2 GDP growth might complicate BoJ’s plan to raise rates.
  • A combination of factors weighs on the Euro and caps any meaningful upside for the cross.

The EUR/JPY cross stages a goodish recovery from the 157.40-157.35 region, or over a one-month low touched on the first day of a new week and reverses a part of Friday's losses. Spot prices climb to a fresh daily peak during the early European session and currently trade just below mid-158.00s amid a broad-based Japanese Yen (JPY) weakness.

Official data published earlier today showed that Japan's economy grew at a slightly slower pace, by an annualized 2.9% in the April-June quarter as compared to a 3.1% rise in the preliminary estimate. This comes on top of sluggish consumer spending growth in July, which might complicate the Bank of Japan's (BoJ) plans to hike interest rates further in the coming months. Apart from this, a stable performance around the equity markets is seen undermining the safe-haven JPY and acting as a tailwind for the EUR/JPY cross. 

That said, an unexpected rise in Japan's real wages for the second straight month in July keeps the door open for another BoJ rate hike in 2024. Moreover, the BoJ Governor Kazuo Ueda reiterated last week that the central bank will continue to raise interest rates if the economy and prices perform as expected. Apart from this, renewed worries about a US economic downturn, along with persistent geopolitical tensions, should limit losses for the JPY and cap the EUR/JPY cross amid some follow-through selling around the shared currency. 

Growing acceptance that the European Central Bank (ECB) will cut interest rates again in September in the wake of declining inflation in the Eurozone and a modest US Dollar (USD) strength turn out to be key factors weighing on the Euro. In the absence of any relevant market-moving economic releases, the fundamental backdrop warrants some caution before confirming that the EUR/JPY cross has formed a near-term bottom and positioning for any meaningful appreciating move.

Economic Indicator

Gross Domestic Product Annualized

The Gross Domestic Product (GDP), released by Japan’s Cabinet Office on a quarterly basis, is a measure of the total value of all goods and services produced in Japan during a given period. The GDP is considered as the main measure of Japan’s economic activity. The data is expressed at an annualized rate, which means that the rate has been adjusted to reflect the amount GDP would have changed over a year’s time, had it continued to grow at that specific rate. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.

Read more.

Last release: Sun Sep 08, 2024 23:50

Frequency: Quarterly

Actual: 2.9%

Consensus: 3.2%

Previous: 3.1%

Source: Japanese Cabinet Office

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Strong profits, falling shares: bank earnings day one meets a memory-chip rout — with CPI and ASML aheadGoldman Sachs blew past estimates (EPS $17.01 vs $13.09 expected, profit +33%) while JPMorgan missed ($5.75 vs $5.93) and Wells Fargo fell 3% — yet the S&P 500 finished flat at 7,805.45, pinned below its record close as a memory-chip rout (SOX −2.67%, Micron under $1,000) kept the pressure on. Tonight brings the week's decider: US September CPI at 8:30 ET, then Bank of America, Morgan Stanley, BlackRock and ASML before the open. Here are the levels, both cases, and the watch list.
Author  Irene Q.
Oct 14, Wed
Goldman Sachs blew past estimates (EPS $17.01 vs $13.09 expected, profit +33%) while JPMorgan missed ($5.75 vs $5.93) and Wells Fargo fell 3% — yet the S&P 500 finished flat at 7,805.45, pinned below its record close as a memory-chip rout (SOX −2.67%, Micron under $1,000) kept the pressure on. Tonight brings the week's decider: US September CPI at 8:30 ET, then Bank of America, Morgan Stanley, BlackRock and ASML before the open. Here are the levels, both cases, and the watch list.
placeholder
US September CPI recap: inflation hits 3.7% as core runs hot — is an October Fed hike back on the table?September CPI landed hot: headline 3.7% y/y, core 2.6% y/y and 0.3% m/m. October hike odds jumped from ~22% to ~37% — yet the dollar faded to 101.74, gold closed higher and the S&P 500 fell 1.11%. Here is the full repricing, the levels and what to watch next.
Author  Irene Q.
Oct 15, Thu
September CPI landed hot: headline 3.7% y/y, core 2.6% y/y and 0.3% m/m. October hike odds jumped from ~22% to ~37% — yet the dollar faded to 101.74, gold closed higher and the S&P 500 fell 1.11%. Here is the full repricing, the levels and what to watch next.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 15, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 15, 2026. Read on for the details.
Author  Mitrade
Oct 16, Fri
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 15, 2026. Read on for the details.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 16, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 16, 2026. Read on for the details.
Author  Mitrade
Oct 16, Fri
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 16, 2026. Read on for the details.
placeholder
Gold Price Forecast: Why Did Gold Rebound After September PPI Rose by Most in Nearly Four Years? As of the European session on October 16, gold prices (XAUUSD) extended their rebound, with the latest price trading near $4,185, up about 0.4% on the day. Gold prices had previously drop
Author  TradingKey
Oct 16, Fri
As of the European session on October 16, gold prices (XAUUSD) extended their rebound, with the latest price trading near $4,185, up about 0.4% on the day. Gold prices had previously drop
Related Instrument
goTop
quote