EUR/JPY hits record high, trades below 180.00 ahead of Eurozone GDP

The EUR/JPY cross scales higher for the sixth consecutive day – also marking the seventh day of a positive move in the previous eight – and touches a fresh record high during the Asian session on Friday. Spot prices currently trade just below the 180.00 psychological mark and seem poised to appreciate further amid the bearish sentiment surrounding the Japanese Yen (JPY).

Japan’s Prime Minister Sanae Takaichi, earlier this week, asked for close coordination on policy with the Bank of Japan (BoJ) to develop the national economy and signaled her administration’s preference for interest rates to stay low. This further adds to the uncertainty over the BoJ’s policy tightening path, which has been a key factor behind the JPY’s relative underperformance and continues to act as a tailwind for the EUR/JPY cross.

The shared currency, on the other hand, seems to draw support from bets that the European Central Bank (ECB) is done cutting interest rates. In fact, a majority of economists expect that the ECB will hold its deposit rate this year and see no change by the end of next year. This turns out to be another factor lending support to the EUR/JPY cross and backs the case for an extension of the weekly breakout momentum through key resistance levels.

The market attention now shifts to a packed Eurozone economic calendar, featuring the release of the preliminary Employment Change figures and the first estimate of third-quarter GDP growth figures. The European Commission is also set to unveil its latest economic growth projections, which should influence the Euro (EUR) and provide a fresh impetus to the EUR/JPY cross, which remains on track to register strong weekly gains.