The euro/JPY is lower than 163.00 follow -up optimistic CPI data

• EUR/JPY is declining as the Japanese yen is gaining strength after the release of the consumer price index data in Tokyo on Friday.
• Tokyo’s primary consumer index increased by 2.4 % on an annual basis in March, while maintaining the goal of the 2 % bank of Japan.
• The euro (EUR) is weakened with high trade tensions between the United States and the euro area.

EUR/JPY sets its latest gains from the previous session, trading about 162.70 during the Asian hours. Low the woolen currency, as the Japanese yen is reinforced after the release of the consumer price index data in Tokyo on Friday.

Tokyo’s basic consumer index increased by 2.4 % year on an annual basis in March, an increase of 2.2 % in February, align with market expectations. This is the fifth consecutive month, which has remained the basic inflation above the goal of the Bank of Japan (BOJ) by 2 %, which enhances speculation that the central bank will continue to normalize its monetary policy.

The main address of the Consumer Prices Index in Tokyo in March increased by 2.9 % on an annual basis, and it has not changed from the previous month, according to the Statistics Office in Japan. Meanwhile, CPI rose in Tokyo, with the exception of fresh foods and energy, to 1.1 % in March from 0.8 % in February (it was reviewed from 2.2 %).

In the summary of its meeting in March, Boj confirmed its commitment to raising interest rates on politics and controlling cash residence if economic conditions and prices are required. The Central Bank emphasized a flexible approach based on data, taking into account advanced economic trends, inflationary pressures, and associated risks.

The EUR/JPY cross also faces pressure as EURO (EUR) weakens against its peers amid the escalation of trade tensions between the United States (the United States) and the euro region. Fears of a possible trade war intensified with the European Union’s European Union preparation (EU) in response to the 25 % automatic definitions imposed by President Donald Trump, who will get April 2.

Germany is expected to be greatly affected, as 13 % of total car exports are sent to the United States. This development can be burdened to the future of the euro. On Wednesday, Trump signed a declaration that imposes definitions and warned of tougher measures against the European Union and Canada if they criticize.