EUR/JPY sees resistance at 143.30 despite Japan's dismal Unemployment report

Despite the rise in Japan's Unemployment Rate, the EUR/JPY pair is encountering resistance at 143.30. The Statistics Bureau of Japan has stated that the unemployment rate is 2.6%, which is higher than both the estimates and the previous figure of 2.5%. The Jobs-to-Applicants ratio has increased to 1.24, which is higher than the previous reading of 1.23 but in line with the consensus estimate of 1.24.

Rising employment prospects in the Japanese economy imply that the Bank of Japan's (BOJ) conservative monetary policy is creating jobs. The availability of cheap money in the economy encourages corporations to invest aggressively. Additionally, the expanding exports of the economy in conjunction with the cheap Japanese yen are bolstering the labor market. In FY2021, Japan's tax income hit a record-breaking 67 trillion yen - Nikkei. The yen bulls may be supported by an increase in the economy's tax income.

The bulls of the shared currency are anticipating the release of the Harmonized Index of Consumer Prices on the eurozone front (HICP). According to predictions, the yearly inflation rate might increase to 8.3 percent from 8.1 percent. In this backdrop, European Central Bank (ECB) President Christine Lagarde noted that despite a spate of rate rise announcements, the likelihood of a return to a lower inflation environment is extremely unlikely.