EUR/JPY seeks fresh impetus from EU leaders summit and NATO meeting. EU leaders are mixed on the embargo on Russian oil. Europe’s higher dependency may weigh pressure on its economy if an embargo takes place. The EUR/JPY pair is consolidating in a narrow range of 133.10-133.28 as investors await a fresh trigger for further guidance. The outcome of the European Union (EU) leaders summit and NATO meeting are going to expand uncertainty on Thursday. The pair has been rallying in the last few trading sessions amid broader weakness in the Japanese yen.
It is worth noting that Europe addresses 30% of its energy requirements and 25% of its oil demand from Russia. Therefore, finding a substitute on too short notice won’t be a cakewalk.
Apart from that, US President Joe Biden's meeting with his NATO counterparts will also weigh pressure on the shared currency in case the outcome calls for more sanctions. On Japan’s docket, investors will focus on Tokyo Consumer Price Index (CPI), which is due on Thursday. A preliminary estimate for the Tokyo CPI is 1.5% higher than the prior print of 1%.