Snapshot: EUR/JPY currently trades near 170.50, relatively unchanged on the session. The pair is sensitive to incoming eurozone PMI data, given the ECB’s data-dependent stance and recent rate cut. A miss could trigger a further repricing of ECB easing expectations.
- Support near 169.80; a break would signal further downside.
- Watch for any BOJ communication regarding yen weakness, especially if EUR/JPY breaches prior intervention levels.
Bias into NY: Cautiously bearish on EUR/JPY. Any further weakening in the eurozone PMIs before the 08:30 ET US data print, specifically the German services number, could put pressure on the pair. A dovish ECB repricing would amplify the move.