The EUR/JPY cross comes under some renewed selling pressure on Thursday and moves away from the weekly peak, around the 161.45 region touched the previous day. Spot prices, however, bounced nearly 100 pips from the daily low and traded with modest intraday losses, just below the 160.00 psychological mark during the early European session.The Japanese Yen (JPY) gains some positive traction after the Bank of Japan’s (BoJ) summary of opinions from the July meeting indicated that some members see room for further rate hikes and policy normalization. Apart from this, concerns about an economic downturn in the US and China, along with escalating geopolitical tensions in the Middle East, further underpin the safe-haven JPY, which, in turn, exerts pressure on the EUR/JPY cross.The shared currency, on the other hand, draws some support from the emergence of some selling around the US Dollar (USD) and better-than-expected German data released this week – Factory Orders and Industrial Production figures. That said, the European Central Bank’s (ECB) downbeat view of the Eurozone’s economic prospects and expectations for additional interest rate cuts by the end of this year might cap the upside for the Euro.In the absence of any relevant market-moving economic releases on Thursday, the aforementioned fundamental backdrop makes it prudent to wait for a strong follow-through buying before confirming that the EUR/JPY cross has bottomed out. Meanwhile, a sustained strength beyond the overnight swing high, around the 161.45 zone, will set the stage for an extension of this week’s goodish recovery from the 154.40-154.35 region, or the YTD low.More By This Author:Gold Price Flat Lines Below $2,400 EUR/USD Bounces Off 1.0900 Mark, Keeps The Red Amid Modest USD Strength NZD/USD Clings To Upbeat Jobs Data-Inspired Gains To Over Two-Week High, Around 0.6000
