EUR/JPY falls below 142.20 amid rising prospects of an ECB rate rise
As attention focuses to the eurozone's HICP, EUR/JPY has declined to roughly 142.20. The eurozone HICP is anticipated to rise to 8.3 percent from 8.1 percent previously reported. The extremely loose monetary policy of the Bank of Japan will keep yen bulls on tenterhooks.

The EUR/JPY pair is falling precipitously after failing to surpass the crucial barrier of 143.00. The cross exhibited characteristics of a bearish open rejection-reversal trading session. The asset moved moderately higher after beginning flat, encountered resistance around the critical barrier of 143.00, retreated and extended losses after falling from 142.62 at the opening bell.
The yen bulls are performing well despite the continuance of the Bank of Japan's ultra-loose monetary policy (BOJ). According to the minutes of the BOJ's monetary policy meeting, the majority of policymakers favored a cautious monetary policy.
Despite achieving the desired inflation rate of greater than 2 percent, the BOJ is likely to inject more liquidity into the economy. The levels of aggregate demand in the Japanese economy have not yet returned to their pre-pandemic levels. Additionally, the inflation rate in the Japanese economy is impacted by the rising cost of gasoline and food.
In the meanwhile, the bulls on shared currencies anticipate a rate rise announcement in July. Despite escalating pricing pressures, it is noteworthy that the economy has not yet increased interest rates. The other Western leaders have already raised their interest rates to combat inflation, therefore the European Central Bank (ECB) should have the courage to do the same.
This week, investors will continue to focus on the Harmonized Index of Consumer Prices (HICP) for the eurozone. A preliminary estimate of the annual inflation rate is 8.3 percent, up from 8.1 percent in the previous report. A continuance of the rising inflation rate calls for the ECB to declare a massive rate rise.
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