EUR/JPY plays around 141.50, investors await more development on Russia-Ukraine tensions
- EUR/JPY is oscillating around 141.50 ahead of further developments in Russia-Ukraine tensions.
- Eurozone Sentix Investor Confidence index dropped to its lowest level since March 2020.
- Current Account activities in Japan have declined sharply which may alert the yen bulls.
The EUR/JPY pair is displaying back-and-forth moves around 141.50 in the Tokyo session after sensing fresh demand near 141.00. Broadly, the cross is declining from the past week after failing to cross 144.00 amid escalating geopolitical tensions between Russia and Ukraine. And, the ongoing energy crisis that is impacting business operations and households’ paychecks.
Risk-profile has been extremely soured after reports from Reuters cited that the recent missile attacks by Russia at Kyiv are the biggest strike since the start of the war. Meanwhile, US President Joe Biden has pledged to provide advanced air systems to Ukrainian President Volodymyr Zelenskyy to retaliate against the crucified attempts by Moscow.
Apart from that, the rebound move in the cross from the round-level cushion of 141.00 was witnessed after the German administration denied backing the joint EU debt plan to tackle the energy crisis.
On the economic data front, The Eurozone Sentix Investor Confidence index deteriorated to -38.3 in October from -31.8 in September vs. -34.7 expected. The figure of -38.3 has been marked as the lowest since March 2000. Investors’ confidence in the trading bloc is weighed down by the energy crisis after attacks on Nord Stream 1 pipeline and weaker economic fundamentals due to soaring price pressures.
Meanwhile, yen bulls are awaiting the release of the Current Account data. The economic data has landed at yen 58.9 billion, extremely lower than the projections of yen 121.8 billion and the prior release of yen 229 billion. This indicates that the trade activities in Japan have trimmed dramatically, which could bring volatility for the yen bulls.