Ella 
During the European trading session on Friday, EUR/JPY recovered its intraday losses and gradually moved higher to around 164.10. However, EUR/JPY faces challenges as the safe-haven Japanese yen (JPY) gains traction amid rising geopolitical tensions after Iran vowed to respond to Israel’s attack on its embassy in Syria, which resulted in Iranian military casualties. behavior to retaliate.
Poor German economic data may put pressure on the euro, limiting EUR/JPY’s gains. Germany’s Federal Statistical Office reported that factory orders shrank by a seasonally adjusted 0.2% month-on-month in February, below expectations for a 0.8% increase, but a rebound from the previous decline of 11.4%. The index fell 10.6% year-over-year, beating the previous reading of 6.2%.
Retail sales in the Eurozone shrank by 0.7% year-on-year in February, compared with expectations for a 1.3% decline and the previous value of 0.9%. The indicator fell 0.5% month-on-month, and was expected to fall 0.4%.
Bank of Japan Governor Kazuo Ueda said on Friday that the central bank may adjust monetary policy if foreign exchange fluctuations have a significant impact on the wage-inflation cycle that cannot be ignored.
