Snapshot: EUR/JPY trades at 184.10, up 0.07% on the day. The dominant domestic driver remains the divergent central bank stances, with the ECB tightening and the BoJ actively normalising policy. Today’s catalyst is the upcoming 08:30 ET US macro data, which will provide broader market direction.
- The ECB’s tightening bias, evidenced by the recent hike and upward inflation revisions, underpins the Euro’s strength against a BoJ signalling further policy normalisation.
- Watch for any communication from the MoF/BoJ regarding Yen weakness, as the pair pushes past intervention zones.
Bias into NY: The setup favours continued Euro strength against the Yen, driven by the ECB’s hawkish pivot and the BoJ’s ongoing normalisation. We look for a move towards 184.50 if US data supports risk appetite.