Snapshot: EUR/JPY trades at 185.73, down -0.05% on the session, consolidating after its recent surge. The market remains sensitive to signals from the Bank of Japan, particularly regarding further policy normalisation. No key data releases are scheduled for today.
- Watch 186.00; a sustained break would suggest further upside driven by carry appeal.
- Risk: Any hawkish communication from BoJ officials could trigger a sharp Yen rebound, squeezing EUR/JPY longs.
Bias into NY: Mildly bullish, contingent on risk appetite remaining firm and no surprises from BoJ whispers. A break above 186.00 targets 186.50, but caution is warranted given intervention risks and the market’s extended positioning.