EUR/JPY is on the rise following Eurozone inflation data meeting economists’ expectations, signaling a potential shift in the market. After weaker-than-expected German and Spanish inflation numbers, the Euro rebounded, pushing EUR/JPY higher.
The annual Consumer Price Index (CPI) in the Eurozone rose by 2.2% in August, aligning with estimates and supporting the Euro. Despite this being the lowest increase since July 2021, it was in line with expectations, keeping the Euro strong against the Japanese Yen.
The European Central Bank (ECB) is expected to maintain a cautious approach to interest rate adjustments, which could further support the Euro. With services inflation remaining high and core CPI steady at 2.8%, the ECB is likely to keep rates stable for the time being.
On the other hand, Japanese data showing an uptick in inflation suggests the Bank of Japan (BoJ) may raise rates, bolstering the Yen. Despite a slight increase in the unemployment rate, analysts believe the BoJ will continue with its rate hike plans.
Overall, the EUR/JPY pair may remain range-bound as both currencies receive support from economic data. Traders should keep a close eye on inflation figures and central bank policies to make informed investment decisions.
Remember, staying informed and analyzing market trends is key to successful trading in the forex market. Keep track of the latest news and data to stay ahead of the curve and maximize your investment potential.