Ella 
EUR/JPY fell to 166.65 during Monday’s Asian session. The cross hit an intraday low of 166.36 after retracing from 171.60 (highest level since 2008). There is speculation that the Bank of Japan (BoJ) may intervene in the foreign exchange (FX) market to prevent the Japanese yen (JPY) from depreciating.
Japanese policymakers have warned in recent weeks that they will take necessary measures if necessary to counter excessive volatility in the yen after it fell to multi-decade lows. The yen rebounded in early trading on Monday on the back of possible foreign exchange intervention by the Bank of Japan, but no official statement has been issued so far due to a holiday in Japan.
On the other hand, European Central Bank (ECB) policymakers noted that euro zone inflation is cooling and that the ECB is still likely to start cutting deposit rates from a record 4% in June. However, investors will get more clues from upcoming inflation data. The preliminary value of the German Consumer Price Index (CPI) will be released on Monday. Eurozone first-quarter gross domestic product (GDP) and Harmonized Index of Consumer Prices (HICP) will be released on Wednesday. If the report shows better-than-expected results, it could boost the euro (EUR) and limit the downside for EUR/day.
