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Market News EUR/JPY surpasses 142.00 despite positive Japanese data; German Retail Sales are under focus

EUR/JPY surpasses 142.00 despite positive Japanese data; German Retail Sales are under focus

The EUR/JPY pair has stabilized over 142.00 as hawkish ECB bets surge. The yen bulls have been unable to benefit on encouraging economic news from Japan. Consumer Confidence in the Eurozone has been in line with forecasts, and German Retail Sales may decline in the near future.

Alina Haynes
2022-09-30
439

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After surpassing the round milestone of 140.00, the EUR/JPY currency pair demonstrated a juggernaut rise. During the Asian session, the asset is advancing vertically north and has established itself over the immediate resistance of 142.00. Despite the announcement of optimistic Japanese economic statistics, the cross has not detected any selling pressure.

 

The Japan Unemployment Rate has met expectations of 2.5% and maintained below the previous announcement of 2.6%. While the Jobs-to-Applicants Ratio improved to 1.32 versus 1.30 as predicted and 1.29 as previously reported.

 

In addition, the Retail Sales data has greatly risen to 4.1%, above the projection of 2.8% and the previous figure of 2.2%. As a result of the Bank of Japan's ongoing injections of money into the market, the Japanese economy's retail demand appears to be optimistic (BOJ). The BOJ considers that economic stimuli are necessary to revive the pre-pandemic growth pace. Additionally, Industrial Production has increased to 5.1% from an annual decline of 2%.

 

In the meantime, the shared currency bulls are performing well following Christine Lagarde's hawkish comments as president of the European Central Bank (ECB). It is anticipated that the ECB will tighten its policy further, as it has provided specific advice. The European Central Bank (ECB) will increase its interest rate by 125 basis points (bps) at its upcoming monetary policy meeting.

 

On the economic front, Eurozone Consumer Confidence has maintained in line with forecasts and the previous report, but has deteriorated to -28.8. Going forward, the focus will be on the German Retail Sales figures. The economic statistics is anticipated to decline by 5.1% annually, as opposed to 2.6% in the previous report.


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