Snapshot: EUR/JPY trades near 170.50, underpinned by the contrast between a still-dovish ECB and a cautiously hawkish BoJ. The ECB’s mild easing bias, evidenced by last month’s 25bp cut and retained meeting-by-meeting language, is the dominant driver. No high-impact US data is scheduled before the NY close.
- Watch 170.75; a break confirms bullish momentum towards the year’s highs.
- Yen weakness past prior intervention zones materially raises MoF/BoJ communication risk.
Bias into NY: Bullish. The diverging central bank stances favour further upside in EUR/JPY, potentially testing 171.00; rising US yields, with the 10Y at 4.59%, add a tailwind to the move.