EUR/JPY hits one-month low in Asia

• EUR/JPY is trading in the red for the fourth straight day.  
• The currency pair fell to 124.18 a few minutes before press time, the lowest level since March 29.  
• BOJ’s policy exhaustion and upbeat Tokyo CPI released earlier today could keep the JPY better bid during the day ahead.  

EUR/JPY is extending its three-day losing streak in Asia, having hit a one-month low of 124.18 a few minutes before press time.  

The Bank of Japan (BOJ) left key policy tools unchanged yesterday, as expected, and revised both growth and inflation forecasts for the fiscal year 2020/21 lower.  

The JPY still gained ground, ending 0.65 percent higher against the shared currency, which indicates the investors are likely convinced the BOJ has run out of ammo and won’t be able to do much even if the price pressures weaken sharply in the near future.  

BOJ’s policy exhaustion may keep the JPY better bid while heading into the weekend – more so, as the data released earlier today showed Tokyo’s core CPI jumped 1.3 percent year-on-year in April, beating the estimated rise of 1.1 percent.  

Further, retail sales rose 0.2 percent month-on-month in March, beating the estimated 0.2 percent drop.  

Industrial production, however, tanked 0.9 percent month-on-month in March. Markets were expecting a 0.1 percent drop.  

Technical Levels