Created
: 2025.03.28
2025.03.28 11:34
EUR/JPY retraces its recent gains from the previous session, trading around 162.70 during the Asian hours. The currency cross depreciates as the Japanese Yen (JPY) strengthens following the release of Tokyo's Consumer Price Index (CPI) data on Friday.
Tokyo's core CPI rose 2.4% year-on-year in March, up from 2.2% in February, aligning with market expectations. This marks the fifth consecutive month that core inflation has remained above the Bank of Japan's (BoJ) 2% target, reinforcing speculation that the central bank will continue normalizing its monetary policy.
The headline Tokyo CPI for March increased 2.9% YoY, unchanged from the previous month, according to Japan's Statistics Bureau. Meanwhile, Tokyo CPI, excluding fresh food and energy, rose to 1.1% in March from 0.8% in February (revised from 2.2%).
The BoJ, in its March meeting summary, reaffirmed its commitment to raising policy interest rates and adjusting monetary accommodation if economic and price conditions warrant. The central bank emphasized a flexible, data-driven approach, taking into account evolving economic trends, inflationary pressures, and associated risks.
The EUR/JPY cross also faces pressure as the Euro (EUR) weakens against its peers amid escalating trade tensions between the United States (US) and the Eurozone. Concerns over a potential trade war have intensified as the European Union (EU) prepares retaliatory tariffs in response to the 25% auto tariffs imposed by President Donald Trump, set to take effect on April 2.
Germany is expected to be significantly impacted, as 13% of its total auto exports are sent to the US. This development could weigh on the Euro's outlook. On Wednesday, Trump signed a proclamation enforcing the tariffs and warned of stricter measures against the EU and Canada if they retaliate.
The Tokyo Consumer Price Index (CPI), released by the Statistics Bureau of Japan on a monthly basis, measures the price fluctuation of goods and services purchased by households in the Tokyo region excluding fresh food, whose prices often fluctuate depending on the weather. The index is widely considered as a leading indicator of Japan's overall CPI as it is published weeks before the nationwide reading. The YoY reading compares prices in the reference month to the same month a year earlier. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.
Read more.Last release: Thu Mar 27, 2025 23:30
Frequency: Monthly
Actual: 2.4%
Consensus: 2.2%
Previous: 2.2%
Source: Statistics Bureau of Japan
Created
: 2025.03.28
Last updated
: 2025.03.28
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy