EUR/JPY Eases Around 138.00
EUR/JPY eased to around 138.30 after falling to about 137.26 on Wednesday. The pair has been declining since June 28 after failing to break the monthly resistance at 144.30.
Growing fears of a recession in Europe pressured the currency pair following a negative statement by the Bank of England (BOE), which implicated that volatility in the oil and raw-material prices may shock the economy. Aside from this, the gas supply strain between Europe and the UK economy is another factor contributing to the downside bias of the currency pair. The UK announced that the country would stop supplying gas to mainland Europe if it hits shortages in the coming months.
Bank Of Japan
In Japan, the Bank of Japan (BOJ) has concerns regarding the underwhelming wage-price concept. Wage prices need to be increased to prevent inflation rates from rising above ideal levels. If inflation rises too high, households would be affected by higher living costs, which is likely to lead to a recession or a housing crisis.