Snapshot: EUR/JPY trades near 170.80, up ~0.2% on the session, buoyed by rising expectations of a further Bank of Japan rate hike this year. Recent hawkish comments from BoJ board member Masu, alongside persistent yen weakness, reinforces the narrative of slow policy normalisation. Focus remains on spring wage data and potential MoF/BoJ intervention.
- Watch 171.00 resistance; break opens the door to further upside.
- Risk: Any signs of pushback from the Ministry of Finance on yen weakness could trigger a sharp reversal.
Bias into NY: Bullish on EUR/JPY, supported by widening monetary policy divergence and the BoJ’s slow path to normalisation; a break above 171.00 targets 171.50. US 2Y yield near 3.98% provides limited headwinds to the upside.