EUR/JPY Recovers After Initial Decline
The EUR/JPY pair has rebounded from a short-term decline, with the currency pair trading near 162.50. The Japanese Yen gained strength following hawkish comments from Bank of Japan Governor Kazuo Ueda, who suggested the need for further interest rate hikes to address persistent inflationary pressures.
While the Eurozone economy has shown some resilience, as indicated by the stronger-than-expected PMI data, the region's wage growth has remained relatively subdued, supporting expectations for further ECB interest rate cuts.
Technical Outlook
The EUR/JPY pair has recovered from a short-term decline, with the potential for further upside. However, the pair remains within a neutral range, and a decisive break above the 163.00 level would be required to confirm a stronger uptrend.