EUR/JPY moved into the upper 185s as the yen weakened and ended yesterday in a range. The pair showed no notable reaction after the euro-area HICP release, while order-book activity drew attention on today's chart.
Yesterday, 1 September, EUR/JPY moved in the direction of yen weakness but traded in a range throughout the day. USD/JPY rose as the yen weakened, while EUR/USD fell, resulting in offsetting moves. After midnight, yen weakness within the range remained dominant.
Today, 2 September, the order book showed particularly heavy buy orders in the mid-184s, with heavy buy orders also observed around ¥184. Meanwhile, sell orders were observed in the mid-185s, as well as around ¥187.
The euro-area Harmonised Index of Consumer Prices (HICP) was in line with market expectations, but EUR/JPY showed no notable reaction to the release.
Over the past 24 hours, correlation analysis showed a correlation between EUR/JPY and USD/JPY, a weak correlation with GBP/JPY, and an inverse correlation with GBP/USD. In terms of currency strength, the US dollar was considered the strongest and the New Zealand dollar the weakest, while the yen moved around zero.
Economic indicators scheduled for release today include the US ADP employment report, the Bank of Canada's policy rate decision and the US Federal Reserve's Beige Book.