EUR/JPY Maintains Position Above 163.00 Mark, Focus on Japanese CPI Data

In Monday’s early European session, EUR/JPY continues its upward trend, hovering near 163.15 amid a prevailing risk-on sentiment. Reports suggest that the Japanese government is contemplating declaring an end to deflation, hinting at potential policy adjustments.

Meanwhile, the European Central Bank (ECB) is anticipated to keep interest rates unchanged at its upcoming March meeting on Thursday. This decision aligns with the ECB’s cautious approach, awaiting further evidence to ensure sustained decreases in inflation. The recent minutes from the ECB’s January meeting emphasized the need for continuity, caution, and patience.

Amidst geopolitical tensions in the Middle East, concerns arise about a potential inflation rebound, potentially delaying speculations regarding ECB rate cuts.

Investors eagerly await the release of Japan’s February Consumer Price Index (CPI) data on Tuesday, which will provide insights into the economic landscape. Additionally, Eurozone Retail Sales data is scheduled for release on Wednesday.

As the market awaits the ECB’s interest rate decision and press conference on Thursday, traders will monitor these developments closely for potential trading opportunities within the EUR/JPY cross.

EUR/JPY