ECB officials suggest potential June rate increases, lifting the Euro against the Yen ahead of Japan’s Q1 GDP data.
The EUR/JPY pair climbed to near 184.80 in early European trading, ending a four-day losing streak. The move follows hawkish comments from ECB Governing Council members, including Yannis Stournaras, who indicated a modest rate hike could curb inflation without harming growth.
Market focus shifts to Japan’s preliminary Q1 GDP data, due Tuesday, with economists expecting 0.4% growth, up from 0.3% in the prior quarter. Stronger-than-expected figures could support the Yen, limiting further EUR gains.
Technical indicators show the pair trading below the Bollinger midpoint, with the 14-day RSI at 47.75, signaling muted momentum. Support lies at the 100-day SMA near 184.30, while resistance remains at the upper Bollinger band.