EUR/JPY Holds Above Key Support Amid BOJ Hike Expectations

The EUR/JPY currency pair is holding above its key support level of 185.60, despite a slight decline in Monday's early European session.

This comes as Japan's July core Consumer Price Index (CPI) accelerated to 1.8% year-on-year from 1.6%, reinforcing expectations for another Bank of Japan rate hike.

Societe Generale maintains its call for a September BoJ hike and a gradual normalization path, aligning with market pricing of a roughly 82% probability of a move.