The Euro rebounded against the Yen following the Bank of Japan’s rate decision and stronger Eurozone inflation data.
The EUR/JPY pair stabilized around 184.00 on Friday after sharp volatility earlier in the week. The cross had plunged to near 182.00 from around 187.00, losing nearly 500 pips in minutes, amid suspected intervention by Japanese authorities in currency markets.
Prior to the rebound, the pair had faced downward pressure following the Bank of Japan’s decision to maintain its ultra-loose monetary policy. Meanwhile, Eurozone inflation data provided support for the Euro, helping the cross recover.
Traders are monitoring the pair for further stabilization as market participants assess the impact of central bank policies and economic indicators.