EUR/JPY pushed above 178.00 in Tuesday’s Asian trading, landing around 178.35. The Euro’s picking up steam against the Yen as global risk appetite comes back to life. Everyone’s waiting to see the German and Eurozone ZEW Economic Sentiment Index—that data could shake things up for this pair.
As the funding bill passed, it put traders in a positive mood as US shutdown fears subsided. Definitely, it will make them more attracted to riskier options like the Euro; however, the Japanese Yen, considered a safe haven, will lose some of its appeal.
The Euro also found support from the ECB camp. Vice President Luis de Guindos called current rates “appropriate,” with inflation inching closer to their 2% goal. Other ECB officials sounded cautious but made it clear they’re keeping an eye out for any inflation surprises.
Still, don’t ignore the risk on the Yen side. The Japanese government is watching the currency closely, and Finance Minister Satsuki Katayama didn’t mince words about sharp moves in the Yen. Any sign of intervention could put a lid on further EUR/JPY gains.
For now, EUR/JPY stays in bullish territory above 178.00. Traders are glued to the upcoming Eurozone sentiment data for the next big move.
