The EUR/JPY struggles around 143.50 ahead of Japan's GDP and Lagarde's address

After failing to break through the important 143.50 mark during the Asian session, the EUR/JPY pair is under selling pressure. Following a spectacular recovery from below 141.00 on Monday, the cross is showing signs of fatigue in its upward momentum. The cross gained traction with the release of the dismal Eurozone Retail Sales data on Monday.

Data for monthly retail sales in the Eurozone showed a dip of 1.8%, beating expectations of a 1.7% drop. Aside from that, annual economic data contraction came in at 2.7% as opposed to the 2.6% consensus expectation. A decline in household demand demonstrates the effectiveness of the European Central Bank's (ECB) policy tightening initiatives. In order to maintain sales, this might prompt companies to lower the prices of their products and services.

Although the inflation monster is enormous in comparison to the 2% inflation target, a decline in retail demand is undeniable proof that inflation will decline in the future. The ECB might be forced to raise interest rates as a result of this.

According to the Deccan Herald, European Economy Commissioner Paolo Gentiloni predicted that Europe will experience a recession this winter and that growth won't resume until the following spring. His comments came the day before the Eurogroup meeting. Inflation appears to have peaked; the decline will be gradual, he continued.

Markets will be closely watching Christine Lagarde's speech on Thursday. She is the president of the European Central Bank. The president's address will determine the anticipated monetary policy decision made by the ECB at its December meeting.

The release of third-quarter Gross Domestic Product (GDP) figures will be crucial on the Tokyo front. In contrast to the previous contraction of 1.2%, the annualized decline in Japan's GDP is forecast to be 1.1%. Additionally, it is anticipated that quarterly figures will decrease by 0.3%, similar to the previous report. The Bank of Japan may need to further ease its policy if Japan's GDP falls.