EUR/JPY Pair Seeks Support Ahead of Bank of Japan Rate Decision
The EUR/JPY pair is trying to find its footing after being sold off aggressively in recent days. According to Christopher Lewis, a technical analyst and market commentator at DailyForex, the pair has found a potential floor at ¥178.
This level of support is significant because it's been hit as part of broader yen weakness over the past couple of days. The euro has bounced against the Japanese yen in this period, but traders are now expecting the Bank of Japan to raise interest rates by 25 basis points on Friday.
The real determinant for the market will be the tone of the Bank of Japan's statement and press conference following the rate decision. A hawkish tone could lead to a sell-off in the pair, while a more dovish stance might allow it to recover.