EUR/JPY juggles around 137.70 ahead of Euro ZEW Survey

• EUR/JPY is hovering above 137.00 as investors await EURO ZEW Survey-Economic Sentiment.
• The release of BOJ’s monetary policy minutes failed to trigger the yen bulls.
• The mega event of this week will be the speech from ECB’s Christine Lagarde.

The EUR/JPY pair is consolidating in a narrow range of 137.46-137.80 as investors are awaiting the release of Europe’s ZEW Survey-Economic Sentiment, which dictates the deviation between the number of optimistic and pessimistic institutional investors. The ZEW Survey is seen at -41 against the former print of -43. Generally, a negative figure results in more weakness for the shared currency.

On a broader note, the cross has delivered a flat-to-positive performance over the past few weeks. The euro bulls are expecting the phase of stagflation amid galloping inflation numbers due to higher energy bills and other commodity prices. Meanwhile, the inability of the administration in creating jobs has raised concerns over the employment figures. The European Central Bank (ECB) doesn’t seem to paddle its interest rates until the end of the Asset Purchase Program (APP), which is expected to conclude in the third quarter of this year.

Meanwhile, the Japanese yen has failed to bring any actionable move despite the release of the Bank of Japan (BOJ)’s monetary policy minutes on Monday. It is worth noting that the BOJ continued its prolonged ‘neutral’ stance on its monetary policy announced in the last week of April.

This week the mega event will be the speech from ECB’s President Christine Lagarde which is due on Wednesday. The speech from ECB’s Lagarde will provide insights on the likely monetary policy action by the ECB in June.