EUR/JPY oscillates around 134.60 as investors await eurozone GDP

• EUR/JPY is juggling in a 14-pips range ahead of GDP numbers.
• Hungary is opposing a quick embargo on Russian oil imports.
• An underperformance is expected from Japan’s GDP numbers this week.

The EUR/JPY pair is displaying an extreme volatility contraction in the Asian session. The cross is trading in a 14-pips range and is expected to continue with its lackluster move as investors are awaiting the release of the Gross Domestic Product (GDP) numbers in the eurozone.

A preliminary estimate by Eurostat claims that the yearly and monthly GDP figures will remain constant. The former is seen at 5% while the latter is expected to land at 0.2%. Lately, the shared currency bulls have been through intense selling pressure amid rising fears of a recession in the eurozone. The European Union (EU) is still discussing an embargo on Russian oil, a follow-up move to retaliate against Russia’s invasion of Ukraine. Opposition to the European embargo has been recorded from Hungary amid its higher dependence on Russia for its fossil fuels and energy needs.

On the Japanese front, yen bulls have remained firmer these trading sessions after Bank of Japan (BOJ)’s Governor Harihuko Kuroda displayed the intention to stick to a prudent monetary policy. The Japanese economy has yet not reached its pre-pandemic growth levels and inflationary pressures are extremely lower. Investors should brace for more stimulus packages by the BOJ to spurt the aggregate demand.

On Wednesday, the Japanese administration will also report the GDP numbers. The quarterly figure is seen at -0.4% against the prior print of 1.1% while the annualized figure is likely to land at -1.8%, significantly lower than the former number of 4.6%.