Ella 
In early European trading on Thursday, EUR/JPY was trading around 163.75, with a mildly bearish trend. The pair traded lower on concerns about FX intervention from Japanese authorities.
On Thursday, Japan’s Chief Cabinet Secretary Yishimasa Hayashi said he would not rule out any options to combat excessive currency volatility and would be watching closely. The verbal intervention was in line with a statement by top currency diplomat Masato Kanda that he would react to disorderly currency moves. Concerns about FX intervention by Japanese authorities are likely to support the Japanese yen (JPY) and limit EUR/JPY upside in the short term.
In the euro, rising speculation that the European Central Bank (ECB) will cut interest rates in June is bearish for the cross. On Tuesday, ECB official Yannis Stoumaras said a rate cut in June was more likely, while Italian Bank of Italy President Fabio Panetta said on Monday that the ECB was Moving towards lower interest rates as inflation is easing rapidly and moving closer to the 2% target.
