Snapshot: EUR/JPY trades at 186.56, down 0.17% on the session, pressured by expectations surrounding today’s Bank of Japan policy decision. The BoJ is expected to hold rates steady, but any hawkish tilt in the Outlook Report or Monetary Policy Statement at 12:04 JST could trigger a further downside move. Focus shifts to the BoJ Press Conference at 15:30 JST.
- Key support lies at 186.11, the day’s low; break below opens up a test of 185.50.
- Upside risk comes from a dovish surprise from the BoJ, or a re-acceleration in Eurozone services HICP.
Bias into NY: Cautiously bearish, anticipating potential JPY strength following the BoJ meeting. Look for a test of 186.00, but keep an eye on DXY strength which could mitigate the downside.