- EUR/JPY is sensing resistance around 143.30 despite an improvement in Japan’s jobless rate to 2.6%.
- The economy has recorded higher employment opportunities amid ongoing prudent monetary policy.
- The shared currency bulls are worried over higher forecasts for eurozone HICP data.
The EUR/JPY pair is sensing barricades around 143.30 despite the increment in Japan’s Unemployment Rate. The Statistics Bureau of Japan has reported the jobless rate at 2.6%, higher than the estimates and the prior print of 2.5%. Moving further, the Jobs/Applicants ratio has improved to 1.24, higher than the former print of 1.23 but in line with the consensus of 1.24.
Rising job opportunities in the Japanese economy indicate that the prudent monetary policy adopted by the Bank of Japan (BOJ) is generating employment. The availability of cheap money in the economy is delighting the corporate sector to invest vigorously. Also, the rising exports by the economy amid the weak Japanese yen are supporting the labor market. Meanwhile, Japan's tax revenue in FY2021 reached a record 67 trillion yen - Nikkei. Higher tax revenue by the economy may support the yen bulls going further.
On the eurozone front, the shared currency bulls are awaiting the release of the Harmonized Index of Consumer Prices (HICP). As per the estimates, the annual inflation rate may improve to 8.3% from the prior figure of 8.1%. In this context, European Central Bank (ECB) President Christine Lagarde stated that the odds of returning to a lower inflation environment despite a spree of rate hike announcements are extremely lower.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains deep in the red below 0.6500 on US-China trade risks
AUD/USD remains under heavy selling pressure below 0.6500 in the Asian session on Tuesday, reversing some losses. Trump's threatened additional 10% tariffs on China, weighinmg heavily on risk sentiment and the China-proxy Australian Dollar while lifting the haven demand for the US Dollar.
USD/JPY ranges around 154.00 as US Dollar strength offsets risk aversion
USD/JPY remains confined in a familiar range at around 154.00 in Tuesday's Asian trading. Fresh tensions surrounding US-China trade war underpin the safe-haven US Dollar, limiting the risk-off sentiment-driven gains in the Japanese Yen. Fed Minutes are next in focus.
Gold rebounds from one-week low; finds support ahead of $2,600
Gold price dropped to a one-week low during the Asian session on Tuesday, albeit finds some support in the vicinity of the $2,600 mark. The prevalent risk-on environment, along with bets for slower Fed rate cuts and elevated US bond yields, drives flows away from the safe-haven XAU/USD and supports prospects for further losses.
Ripple's XRP eyes $1.96 after WisdomTree files for XRP ETF in the US
Ripple's XRP surged over 7% on Monday and aims to stage a rally toward its April 2021 high after WisdomTree registered for an XRP ETF in the US state of Delaware on Monday.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.