EUR/JPY has risen to around 167.20 as the Japanese Yen weakens on Friday. The Bank of Japan (BoJ) decided to keep interest rates at 0% in its April policy meeting, following a rate hike in March. BoJ forecasts suggest inflation will remain close to its 2% target over the next three years, indicating potential rate hikes later in the year. This caused the Japanese Yen to weaken against the Euro.
In Tokyo, consumer inflation declined in April, with the CPI rising 1.8% YoY compared to a previous 2.6% increase. This softer inflation also contributed to the weakening of the Yen.
On the Euro side, ECB policymaker Joachim Nagel expressed support for a rate cut in June, to help prevent economic stagnation in the euro area. Fabio Panetta from the ECB also mentioned that small interest rate cuts could mitigate the risk of prolonged economic stagnation in the eurozone.