EUR/JPY Declines Below 181.50 Amid BoJ Rate Hike Expectations

The EUR/JPY currency pair continues its decline, dipping below 181.50 on Monday's early European session, as the Japanese Yen strengthens against the Euro.

This move is attributed to the announcement by Takuji Aida, economic adviser to Japanese Prime Minister Sanae Takaichi, that the Bank of Japan (BoJ) is likely to raise interest rates in September and continue hiking at a pace of once every quarter until January next year.

The BoJ's decision to raise rates is expected to have a significant impact on the currency market, with traders also waiting for the European Central Bank's (ECB) interest rate decision on Thursday, which could see its deposit rate rise by a quarter-point to 2.50% according to a Reuters poll.

In terms of technical analysis, the EUR/JPY remains in a bearish near-term bias, with the Relative Strength Index (RSI) hovering just above the 30 area, hinting at emerging oversold conditions but not yet signaling a decisive loss of downside momentum.