Investors await the ECB’s policy announcement and Japan’s June inflation data, with EUR/JPY trading near multi-decade highs.
EUR/JPY trades near 186.20 on Wednesday, reflecting stability in the Euro and pressure on the Yen as markets await key central bank decisions. The European Central Bank is expected to keep its Main Refinancing Operations Rate at 2.40% and the Deposit Facility Rate at 2.25%, following a 25 basis points hike in June.
Eurozone Consumer Confidence is forecast to improve to -16.8 in July from -17.7, while Japan’s Core CPI Excluding Fresh Food is expected to rise to 1.6% YoY from 1.4%. A hawkish ECB tone or stronger Japanese inflation could shift sentiment for both currencies.
Technical analysis shows EUR/JPY holding above its 20-period Simple Moving Average, maintaining a bullish near-term bias.