• EUR/JPY weakens following the verbal intervention by Japanese authorities on Wednesday. 
• Japan's top currency diplomat Masato Kanda said authorities will take steps in the market if needed.
• ECB’s Lane said the number of rate cuts will depend on the data. 
• Traders will closely monitor the Eurozone GDP growth numbers for Q4, due on Wednesday. 

The EUR/JPY cross loses momentum during the early European session on Wednesday. Some verbal intervention from the Japanese authorities boosts the Japanese Yen (JPY) and weighs on the EUR/JPY cross. Investors await the Eurozone Gross Domestic Product (GDP) for the fourth quarter. This event might trigger volatility in the market. At press time, the cross is trading at 161.23, down 0.14% on the day. 

Early Wednesday, Japan's top currency diplomat Masato Kanda warned that recent movements in the FX market have been rapid, and authorities will take steps in the market if needed. Additionally, Finance Minister Shunichi Suzuki said that rapid FX moves are undesirable and that the government will monitor the market with stronger urgency. This, in turn, provides some support for the JPY against its rivals. 

On the Euro front, the European Central Bank (ECB) has kept rates steady at a record high since September 2023. However, slowing growth and easing price pressures are fueling speculation about rate cuts, with investors anticipating the first move in April or June. ECB chief economist Philip Lane said on Tuesday that the number and exact timing of rate cuts will depend on how much progress the central bank makes towards its target