EUR/JPY struggles near 139.40 as Europe's energy crisis subsides and the ECB seizes the spotlight.

The EUR/JPY pair faces resistance near 139.40 since the risk-averse market sentiment has weakened risk-sensitive currencies. Follow-through purchasing after a gap-down start is showing signs of weariness as shared currency bulls sense resistance around Friday's low. As investors divert their attention to the European Central Bank's interest rate announcement, it is anticipated that the asset's price would fluctuate wildly (ECB).

The eurozone has joined the United States and the United Kingdom in the exclusive club of countries with an inflation rate of 9 percent or more, leaving the ECB with little choice but to impose a massive rate hike. Investors should be aware that, unlike other central banks, the ECB has not yet raised its interest rates. While the ECB has only declared one rate hike of 50 basis points (bps), other central banks are rapidly nearing a decision.

The news of an increase in gas supplies to the eurozone has confused market participants. The unscheduled maintenance of the Nord Stream 1 pipeline to Germany, which had been anticipated to complete on Saturday, has expanded due to the need for more maintenance. Politico reports that the Russian energy behemoth Gazprom will increase its gas supply to Europe via Ukraine. The company stated that it would transport around 42,7 million cubic meters of natural gas to Europe via Ukraine. Its shipment from Ukraine is wreaking havoc on the market.

Moreover, Japanese Gross Domestic Product (GDP) statistics will continue to be an important event for investors. The quarterly GDP is anticipated to rise to 0.7% from the previous reading of 0.5%. While the annualized number is significantly higher than previously reported at 2.9% compared to 2.2%.