- EUR/JPY has surrendered its gains and has slipped to near 139.50.
- The BOJ has announced an unchanged interest rate policy to keep liquidity injection intact.
- Eurozone HICP is seen stable at 8.1% on an annual basis.
The EUR/JPY pair touched a high of 141.73 swiftly, reversed its gains with an equal opposite reaction, and plunged to near 139.50. The Bank of Japan (BOJ) has maintained its status quo and has announced no change in its policy stance. The announcement has remained in line with the estimates as the BOJ has kept its interest rates flat at -0.1%.
Considering its oil-contaminated 2% inflation rate, a continuation of an ultra-loose monetary policy was expected by the market participants. The economy achieved its inflation targets, however, the majority of the price pressures were contributed by costly fossil fuels. The BOJ will keep on flushing helicopter money into the Japanese economy in order to spurt the growth forecasts.
It is worth noting that the Japanese economy has yet not achieved its pre-pandemic growth levels. Therefore, the BOJ is keeping on restricting its yields at 0.25% to accelerate its exports swiftly.
On the eurozone front, the shared currency bulls are awaiting the release of the Harmonized Index of Consumer Prices (HICP). An annual HICP figure is expected to remain stable at 8.1%. Also, the core HICP that excludes food, energy, alcohol, and tobacco is seen unchanged at 3.8%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.