EUR/JPY finds some support above the 161.00 mark, focus on BoJ rate decision

• EUR/JPY trades on a softer note around 161.15 in Friday’s early European session. 
• BoJ’s Ueda said that policymakers will discuss whether the outlook is favorable enough to phase out the massive monetary stimulus. 
• ECB’s Lane said March data showed progress on inflation, but ECB needs more time to decide when to ease policy.

The EUR/JPY cross attracts some sellers above the 161.00 support level during the early European trading hours on Friday. The cautious mood in the market provides some support to the Japanese Yen (JPY) against the Euro (EUR). However, the lower bets that the BoJ will abandon its negative rates soon might cap the upside of the cross. Market players await the Bank of Japan (BoJ) interest rate decision for fresh catalysts. The cross currently trades near 161.15, down 0.05% on the day. 

The uncertainty around the Bank of Japan's next policy decision is likely to weaken the JPY and create a headwind for the EUR/JPY cross. The BoJ Governor Kazuo Ueda said that policymakers will discuss whether the outlook is favorable enough to phase out the massive monetary stimulus. Meanwhile, the rising geopolitical tension in Europe might boost safe-haven flows and benefit the JPY. Western officials reported on Friday that Russia has moved tactical nuclear weapons from its borders into neighboring Belarus, several hundred miles closer to NATO territory. 

On the Euro front, the European Central Bank (ECB) chief economist Philip Lane stated that the central bank needs to take time to get a clearer picture of inflationary pressures in June. ECB President Christine Lagarde said during the press conference at its March meeting that the first-rate cuts are likely to take place in June rather than in April. 

Later on Friday, the February Consumer Price Index (CPI) from France and Italy is due. These events are unlikely to move the market as traders await the BoJ monetary policy meeting next week. The outcome of the BoJ rate decision could give a clear direction to the EUR/JPY cross in the near term.