EUR/JPY slips below 184.00 following Tokyo inflation data, German labor, CPI eyed

EUR/JPY continues to lose ground for the second successive session, trading around 183.80 during the Asian hours on Friday. The currency cross weakens as the Japanese Yen (JPY) strengthens following Tokyo’s mixed inflation data.

Tokyo’s headline CPI rose 1.6% year-over-year (YoY) in February, up from 1.5% previously. CPI excluding fresh food increased 1.8% YoY, beating the 1.7% forecast but down from 2.0%. Meanwhile, CPI excluding fresh food and energy eased to 1.8% YoY from 2.0%.

Tokyo core inflation slipped below the Bank of Japan’s (BoJ) 2% target for the first time since 2024. Still, price growth remains elevated by historical standards, and recent hawkish remarks from policymakers continue to support expectations of further policy tightening.

Tokyo’s headline CPI rose 1.6% YoY in February, up from 1.5% previously. CPI excluding fresh food increased 1.8% YoY, beating the 1.7% forecast but down from 2.0%. Meanwhile, CPI excluding fresh food and energy eased to 1.8% YoY from 2.0%.

BoJ Governor Kazuo Ueda reiterated that rates will continue to rise if economic and price projections materialize. Board Member Hajime Takata added that further hikes should proceed gradually.

Markets now turn to Germany’s labor market data, including Unemployment Change and the Unemployment Rate, ahead of the release of German CPI figures later in the session.