The Euro pares gains against the Yen but stays above 186.30 as traders await the European Central Bank’s policy update.
The Euro trimmed earlier gains against the Japanese Yen on Thursday, trading at 186.44 after reaching overbought levels. The pair remains near three-month highs, supported by expectations of a hawkish ECB stance amid rising oil prices and inflation concerns.
Markets anticipate the ECB will keep its deposit rate at 2.25% but signal potential further tightening. The Yen continues to face pressure from the Bank of Japan’s ultra-loose policy, despite reports of possible monetary normalization acceleration.
Technical indicators suggest the EUR/JPY bullish bias persists, with dips contained above the 186.30 support level. The 4-hour RSI at 65 and positive MACD hint at ongoing upside momentum.