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
Gold Faces Pressure Ahead of Fed Decision as Prices Extend Drop Below $4,000 As of the Asian session on October 23, gold prices (XAUUSD) continued Thursday's decline, dipping below the $4,000 mark during intraday trading to hit a low of $3,986.54. On Thursday, gol
Author  TradingKey
Yesterday 07: 51
As of the Asian session on October 23, gold prices (XAUUSD) continued Thursday's decline, dipping below the $4,000 mark during intraday trading to hit a low of $3,986.54. On Thursday, gol
placeholder
Nasdaq closes at 26,008.86 — 8.9 points above 26,000, and the credit market never blinkedThe Nasdaq Composite fell 2.60% to 26,008.86 on October 22, its worst session since June, as Meta sank 6.98% on 2026 capex guidance of $135–145 billion. But the equal-weight S&P 500 rose 0.73%, high-yield credit was flat and 10-year yields fell 20 basis points. This was an AI de-rating, not a risk-off event — here is the transmission chain, the 29,000 / 28,200 levels and what would prove it wrong.
Author  Irene Q.
Yesterday 06: 39
The Nasdaq Composite fell 2.60% to 26,008.86 on October 22, its worst session since June, as Meta sank 6.98% on 2026 capex guidance of $135–145 billion. But the equal-weight S&P 500 rose 0.73%, high-yield credit was flat and 10-year yields fell 20 basis points. This was an AI de-rating, not a risk-off event — here is the transmission chain, the 29,000 / 28,200 levels and what would prove it wrong.
placeholder
Brent tops $113 on Saudi supply risk — but the diesel line in the EIA report is the tellBrent's December contract settled at $113.17 on October 22, up 4.00% and the highest close since May 4, after Saudi Arabia restricted refined-product shipments. The same session's EIA report showed crude stocks down 3.06 million barrels and gasoline down 2.95 million — but distillates built 1.68 million. That single line decides whether $113 holds: here are the data, the 108.8 / 114.0 / 119.3 levels and the two scenarios.
Author  Irene Q.
Yesterday 05: 51
Brent's December contract settled at $113.17 on October 22, up 4.00% and the highest close since May 4, after Saudi Arabia restricted refined-product shipments. The same session's EIA report showed crude stocks down 3.06 million barrels and gasoline down 2.95 million — but distillates built 1.68 million. That single line decides whether $113 holds: here are the data, the 108.8 / 114.0 / 119.3 levels and the two scenarios.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 23, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 23, 2026. Read on for the details.
Author  Mitrade
Yesterday 02: 56
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 23, 2026. Read on for the details.
placeholder
Gold falls to two‑month low below $4,050 as oil spikesGold price (XAU/USD) falls to the lowest in more than two months near $4,025 during the early Asian session on Friday. The precious metal faces some selling pressure as escalating tensions in the Middle East send oil surging ahead of a Federal Reserve (Fed) policy meeting.
Author  FXStreet
Yesterday 01: 25
Gold price (XAU/USD) falls to the lowest in more than two months near $4,025 during the early Asian session on Friday. The precious metal faces some selling pressure as escalating tensions in the Middle East send oil surging ahead of a Federal Reserve (Fed) policy meeting.
Related Instrument
goTop
quote