Bearish
EUR/JPY declines to 178.50 amid Bank of Japan's hawkish rate hike signals.
The EUR/JPY currency pair has fallen to approximately 178.50, influenced by recent hawkish statements from Bank of Japan (BoJ) officials indicating potential interest rate hikes. These remarks have strengthened the Japanese Yen against the Euro, maintaining a bearish trend for EUR/JPY.
Key points
- BoJ board member Hajime Takata's comments suggest a possible 25-basis-point rate hike, with consecutive hikes also considered.
- The BoJ is expected to raise its policy rate to 1.25% in the upcoming September meeting, the highest in about 31 years.
- The 14-day Relative Strength Index (RSI) for EUR/JPY is at 22, indicating oversold conditions but not necessarily signaling an immediate reversal.
Sources
AI-generated from public news sources. Not financial advice.
