EUR/JPY fails to breach resistance at 167.60 but remains near multi-month highs

• The Euro remains bid against the Yen with the 167.60 high at a short distance.
• The higher-than-expected Japanese inflation has failed to support the Yen.
• The BoJ monetary policy minutes cast doubts about further rate hikes.

The Euro is appreciating against the Japanese Yen for the second consecutive day on Friday, favoured by a moderately brighter market sentiment. The pair has failed to breach the 11-month high, at 167.60, but remains steady around 167.40 so far.

US President Donald Trump soothed investors earlier today, affirming that he will take two weeks to decide whether to attack Iran. These comments have boosted that a full-blown regional war could be avoided, which is curbing demand for safe havens like the yen, to the benefit of riskier-perceived assets, like the Euro.

A dovish BoJ is weighing on the Yen

On the macroeconomic front, the impact of higher-than-expected Japanese CPI figures has been subdued. Japan's headline inflation eased to a 3.5% yearly pace in May, from 3.6% in April, but the core inflation, more relevant for the central bank, as it strips off the seasonal impact of food and energy prices, accelerated to 3.7% from 3.5% in the previous month.

The minutes from this week's BoJ monetary policy meeting have highlighted increasing concerns about the downside risk to the economy stemming from trade uncertainties, which are prompting some board members to reconsider future rate hikes.

On Thursday, BoJ Governor Ueda cast doubts about further monetary tightening, citing he high trade uncertainties in a dovish tweak to his recent rhetoric and sent the Yen lower against its main peers.