EUR/JPY extends recovery above 168.00 on upbeat Eurozone data

EUR/JPY continued its upward trajectory, surpassing the key level of 168.00, buoyed by encouraging economic data from the Eurozone. The euro found support as the region’s economic indicators painted a positive picture, fueling optimism among investors.

One of the primary drivers behind the euro’s strength was the upbeat Eurozone data, including robust manufacturing and services PMI figures, which pointed towards a resilient economic recovery. The PMI readings suggested strong expansionary trends in both sectors, signaling growing confidence among businesses and consumers alike.

Additionally, optimism prevailed as the Eurozone continued to make progress in its vaccination campaign, which has been crucial in facilitating the reopening of economies and supporting economic activity.

On the other hand, the Japanese yen faced pressure amid concerns about the country’s economic outlook. Japan has been grappling with challenges such as a sluggish pace of vaccination rollout and persistent deflationary pressures, which have weighed on the yen’s performance.

Furthermore, market sentiment was also influenced by global geopolitical developments, including tensions between the United States and Russia, as well as uncertainties surrounding the economic recovery in the aftermath of the COVID-19 pandemic.

Amid these dynamics, investors turned to the EUR/JPY pair as a barometer of risk sentiment, driving its upward movement above the 168.00 level. However, market participants remain cautious, closely monitoring incoming data releases and geopolitical developments for further cues on the currency pair’s direction in the near term.