Snapshot: EUR/JPY is trading at 187.10, up 0.09% on the session, driven by continued hawkish sentiment surrounding the Bank of Japan. The BoJ’s March decision to hold rates while flagging further hikes remains the dominant driver, while the market looks to the BoJ’s meeting tomorrow. The German Prelim CPI m/m at 08:29 CET will offer near-term EUR direction.
- A break above the intraday high of 187.16 would signal further upside.
- Risk lies in any dovish repricing from the ECB, especially if German CPI comes in weak, although for now the mildly hawkish BoJ stance dominates.
Bias into NY: Bullish on EUR/JPY while the BoJ hike narrative holds. A push above 187.20 could open the door to further gains, while the DXY’s bid above 98.60 and rising US yields provide a secondary tailwind.