EUR/JPY surpasses 132.00 ahead of ECB’s Lagarde speech

• EUR/JPY has overstepped 132.00 swiftly on broader weakness in the Japanese yen.
• Rising oil and metal prices are hurting the yen.
• Speech from ECB’S Lagarde will be the major event that will keep investors on the sidelines.

The EUR/JPY pair has witnessed a firmer long build-up, which has pushed the cross above 132.00 after multiple failed attempts. The shared currency bulls are getting stronger ahead of the speech from European Central Bank (ECB)’s President Christine Lagarde, which is due on Tuesday. Apart from the ECB’s Lagarde speech, speeches from ECB’s Vice President Luis De Guindos, ECB’s members Fabio Panetta and Philip Richard Lane will also hold on Tuesday.

EUR/JPY has been underpinned amid a broader sell-off in Tokyo’s yen. The Japanese yen is facing the heat of an unchanged interest rate policy by Bank of Japan (BOJ) Governor Haruhiko Kuroda. The BOJ kept its interest rates at -0.1% amid an in-controlled inflation print. Japan’s National Consumer Price Index (CPI) landed at 0.9%, much higher than the previous print of 0.5% and market consensus of 0.3% but remained below the upside cap of 2%.

Also, the boiling oil prices and rising metal prices are weighing pressure on the Japanese yen. Oil prices have crossed $110 comfortable and are likely to continue moving the north amid various supply constraints.

This week, the European Union (EU) summit will remain a major driver for the cross, which is due on Friday. Also, US President Joe Biden will attend the summit in addition to the NATO meeting on designing a roadmap of a diplomatic solution for Russia and Ukraine. While, the Japanese docket will report Tokyo’s Consumer Price Index (CPI) numbers, which are due on Thursday.