EUR/JPY falls 0.32% to 184.10 as markets price in potential Bank of Japan tightening amid currency intervention warnings.
The Euro slipped 0.32% against the Japanese Yen on Monday, trading at 184.10, as the Yen strengthened on expectations of tighter monetary policy from the Bank of Japan. Markets are pricing in potential rate hikes amid persistent inflation and repeated warnings from Japanese officials about excessive currency weakness.
EUR/JPY had hovered near 185.00 last week, supported by the European Central Bank’s hawkish stance. However, recent comments from Japanese authorities signaling discomfort with the Yen’s depreciation have shifted sentiment, reinforcing bets on BoJ policy normalization.
The pair’s decline reflects broader risk aversion, with investors recalibrating positions ahead of key central bank meetings later this month.