Ella 
EUR/JPY rose for the third consecutive day in Asia on Monday and is currently trading around 158.35, up 0.17% on the day.
At the Jackson Hole Symposium, European Central Bank (ECB) President Christine Lagarde said the battle against inflation had not yet been won. She stressed that central banks must provide a nominal anchor for the economy and ensure price stability while setting interest rates at restrictive levels until the ECB’s medium-term inflation target of 2 percent is achieved.
In addition, European Central Bank Governing Council member Martins Kazak said that it may be too early to pause interest rate hikes, because stopping the fight against inflation too early may put more pressure on the economy in the future. Markets are pricing in a 50% chance of another rate hike at the ECB’s September meeting following comments from ECB policymakers. Still, the disagreement between the European Central Bank and the Bank of Japan over monetary policy lifted the euro against major currencies.
Across the ocean, Bank of Japan Governor Kazuo Ueda told a Fed seminar on Saturday that the central bank believes underlying inflation is below its target and will therefore maintain its current ultra-loose monetary policy framework. Policymakers said domestic demand remained strong and corporate fixed investment was sustained by record high profits.
Traders are awaiting top-level data from the euro zone to inject fresh momentum into the market. German consumer price index (CPI) data is due on Wednesday, while German retail sales and Eurozone CPI data are due on Thursday. In addition, the ECB will publish the minutes of its meeting on Thursday.
