Markets price in a 25-basis-point ECB rate hike after Eurozone inflation hits 3.2%, bolstering the EUR/JPY cross.
The EUR/JPY pair climbed to 184.85 in early European trading, supported by expectations of a European Central Bank rate hike. Markets have fully priced in a 25-basis-point increase at the June meeting following a 3.2% surge in Eurozone inflation.
Japanese authorities remain vigilant over potential currency intervention, issuing warnings of decisive action to stabilize the JPY. Despite this, the cross holds above key technical levels, including the 100-day simple moving average at 184.50.
Technical indicators suggest a bullish bias, with the pair trading above the Bollinger band midline and the Relative Strength Index at 45.9, signaling consolidative momentum rather than a sharp reversal.