EUR/JPY steadies around 137.40 ahead of EU GDP

• EUR/JPY is consolidating in the 18-pips range as investors await EU GDP numbers.
• BOJ’s ultra-loose monetary policy has drifted the asset higher.
• EU is inching closer to embargoing Russian oil.

The EUR/JPY pair is oscillating in a narrow range of 137.32-137.50 in the Asian session as investors are awaiting the release of the Gross Domestic Product (GDP) numbers in the eurozone. The quarterly GDP numbers are seen at 0.3% in-line with the prior print while the annual GDP may outperform. A preliminary reading for the yearly GDP is 5% against the previous figure of 4.3%.

The cross is advancing firmly post dovish tone from the Bank of Japan (BOJ). A prudent monetary policy has been dictated by BOJ Governor Haruhiko Kuroda on Thursday. The BOJ kept interest rates unchanged but warns the impact of higher energy bills and commodity prices on the real income of the households in Japan. The central bank will continue to advocate more stimulus to ramp up the aggregate demand and inflation in the economy going forward. On the weakening yen front, the BOJ commented that corporate profits will remain solid but vulnerable domestic currency could have an adverse impact on the economy.

Meanwhile, the shared currency is expected to face a lot of heat amid its progressive moves towards an embargo on Russian oil imports. The majority of the criticism was coming from Germany in the last discussions but the automobile-maker nation is dropping its opposition as reported by its government officials, according to the WSJ. This will quicken the required paperwork and the prohibition of Russian oil on short notice will spurt the unemployment issues in the eurozone.