EUR/JPY Falls as BoJ Rate Hike Speculation Builds
The EUR/JPY cross traded in negative territory on Monday, with prices hovering around 181.20 during European trading hours.
Japanese Prime Minister Sanae Takaichi's economic adviser, Takuji Aida, stated that the Bank of Japan is expected to raise interest rates this month and continue hiking at a pace of once every quarter until January next year.
The announcement fueled speculation about an upcoming rate hike, with traders bracing for the European Central Bank's (ECB) interest rate decision on Thursday.
Deutsche Bank highlighted that Japan's data calendar will be busy next week, with releases including July labor cash earnings and August Economy Watchers survey.
The EUR/JPY technical analysis suggests a bearish near-term bias, with the Relative Strength Index (14) hovering just above 30, indicating emerging oversold conditions but not yet signaling a decisive loss of downside momentum.