Snapshot: EUR/JPY trades at 183.41, down 2.06% on the session, driven primarily by a dovish ECB pivot cemented by soft German GDP data. Focus shifts to 14:15 CET as the market braces for the ECB’s policy statement and press conference.
- Watch for a break below 182.30 as confirmation of further downside momentum.
- Risk: A hawkish surprise from the ECB at 14:15 CET could trigger a sharp reversal.
Bias into NY: The current setup favours continued downside toward 182.00 as the ECB is expected to maintain a mild easing bias, reinforced by softening eurozone inflation prints, while the BoJ stands pat barring a significant yen depreciation. The DXY weakness is a secondary factor, amplifying the Euro’s woes.