EUR/JPY EASES FROM YTD PEAK, UP A LITTLE AROUND 164.30 AHEAD OF EUROZONE CPI
EUR/JPY EASES FROM YTD PEAK, UP A LITTLE AROUND 164.30 AHEAD OF EUROZONE CPI
The EUR/JPY cross reached a fresh year-to-date high of 164.60–164.65 during the Asian session on Friday, building on the previous day's rally following the Bank of Japan's (BoJ) policy decision.
Spot prices retreated slightly from the daily swing high, currently trading around 164.30, as traders adopt a cautious stance ahead of the upcoming Eurozone consumer inflation figures.
The preliminary Eurozone Harmonized Index of Consumer Prices (HICP) is expected to show a slight easing to a 2.1% year-over-year rate in April from 2.2% in the previous month.
Core inflation, excluding volatile food and energy prices, is anticipated to rise to 2.5% from 2.4% in March.
Softer Eurozone inflation figures could support expectations for another interest rate cut by the European Central Bank (ECB) in June, potentially exerting downward pressure on the euro.
The BoJ's dovish pause on Thursday contributes to the Japanese Yen's relative underperformance, assisting EUR/JPY to trade with a positive bias
Ahead of the crucial Eurozone inflation data, traders remain cautious, limiting fresh bullish bets on the EUR/JPY cross.
