News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Sea Change in Central Bank Policy Leaves EUR/JPY, GBP/JPY Vulnerable

Sea Change in Central Bank Policy Leaves EUR/JPY, GBP/JPY Vulnerable

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- EURJPY and GBPJPY exhibit greater signs of topping.

- USDJPY stuck in range 101.35-103.05.

- Forex economic calendar packed with US data on Thursday.

To keep up with developments central banks and their policy changes, be sure to sign up for my distribution list.

An interesting batch of growth data from the Euro-Zone and Japan puts the European majors at an interesting crossroads against the Japanese Yen, as a more tangible divide has started to grow between their respective central banks.

While the UK economy is far and away the closest to a rate, the Bank of England made clear yesterday that the policy focus would be on the softer inflation environment over the coming months, and with slack in the economy, interest rates could remain lower for longer.

For the ECB, today's weaker than anticipated Q1 GDP report, alongside another tepid inflation report, only increases the likelihood that they will follow through with Mario Draghi's promise for action at the June meeting.

The Japanese growth figures are the most intriguing and what really drive the potential for the JPY-crosses to turn lower. With Q1 growth at an annualized rate of +5.9% and non-core inflation (food and energy) soaring, there is little reason to believe that the Bank of Japan will goose the market much more.

All of the sudden, near-term central bank policies may be geared toward a slightly dovish BoE, an outright dovish ECB, and less dovish BoJ - watch the video to see how these themes are influencing EURJPY, GBPJPY, and USDJPY.

Read more: Sterling Top Developing Alongside Euro after BoE: GBP/JPY, GBP/USD

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.