• The EUR/JPY fell below the 20-day SMA for the first time since May, around 155.50.
• Higher Japanese yields may be hinting at a BoJ pivot.
• Eyes on Tuesday's German Inflation data.

At the start of the week, the EUR/JPY trades with losses for a fifth consecutive day, retreating to the 155.45 area. No high-tier data will be released on Monday as attention is set on Tuesday’s German inflation data. On the other hand, Japanese bond yields continue to rise, making the JPY gain interest.

Following the release of robust Labor Cash Earnings data last Friday, Japanese bond yields increased. The yields rose to their highest since May, indicating that market participants might anticipate a shift in the Bank of Japan's policy from a cautious approach to a more aggressive one. Nonetheless, officials at the Bank of Japan may require additional data in order to pivot. In that sense, Machinery Orders from May and Producer Price Index from June figures, scheduled for release on Wednesday, will be closely watched.

On the other hand, the Federal Statistics Office from Germany will release the Harmonized Index of Consumer Prices (HICP) on Tuesday. The headline figure is expected to increase by 0.4% MoM and the annualised measure to 6.8%, remaining unchanged from its previous figures. As one of the European Central Bank's (ECB) objectives is price stability, the inflation figures may affect the Euro price dynamics