EUR/JPY trades on a weaker note above 165.00, Eurozone PMI data eyed

• EUR/JPY trims gains near 165.15 amid renewed JPY demand. 
• The potential of another hike from BoJ before the end of the year lifts the Japanese Yen. 
• ECB's Lagarde said policymakers will consider cutting rates in June, as data available by June will confirm the path of inflation. 
• The German and Eurozone HCOB PMI for March are due on Thursday.

The EUR/JPY cross trades on a softer note above the 165.00 mark during the early European trading hours on Thursday. The downtick of the cross is supported by the possibility of another rate hike by the Bank of Japan (BoJ) and the fear of FX intervention from the Japanese authorities. Traders await the preliminary German and Eurozone HCOB Purchasing Managers Index (PMI) data for March for fresh impetus. At the press time, EUR/JPY is trading at 165.15, losing 0.03% on the day. 

The Bank of Japan (BoJ) hiked interest rates for the first time in 17 years on Tuesday, and investors are questioning if the BOJ will raise rates again this year and, if so, how much and how rapidly. Meanwhile, the Nikkei newspaper reported that an early rate hike allows for the potential of another hike before the end of the year. This, in turn, provides support for the Japanese Yen (JPY) against the Euro (EUR). 

Furthermore, the verbal intervention from the Japanese authorities might boost the JPY and cap the upside of the EUR/JPY in the near term. Early Thursday, Japanese Finance Minister Shunichi Suzuki said that he will watch foreign exchange moves with a high sense of urgency while adding that it's important for currencies to move in a stable manner. 

On the Euro front, European Central Bank (ECB) President Christine Lagarde stated on Wednesday that policymakers will consider cutting interest rates in the June meeting as data available by June will provide more insight into the inflation trajectory and the labor market condition. Money markets expect three rate cuts from the ECB by December, along with a potential fourth, according to Reuters. 

The HCOB Purchasing Managers Index (PMI) from Germany and the Eurozone is due on Thursday, followed by the German Buba Monthly Report. On Friday, the Japanese National Consumer Price Index (CPI) for February will be released. The Core CPI inflation ex Fresh Food is expected to show an increase of 2.8% in February from 2.0% in January. Traders will take cues from these events and find trading opportunities around the EUR/JPY cross.