Snapshot: EUR/JPY trades at 185.75, up 0.27% on the day. BoJ normalisation bias continues to support the Yen, while ECB’s mild easing bias weighs on the Euro. Focus remains on any further comments from BoJ Governor Ueda.
- Watch for a break above 186.00, potentially opening the path to 186.50.
- Risk: Intervention from the MoF, especially if EUR/JPY pushes significantly higher and volatility picks up, is material.
Bias into NY: Mildly bullish EUR/JPY given the short-term momentum; however, the 186.00 level will likely prove sticky unless we see further dovish ECB headlines or Ueda walks back hawkish guidance.