EUR/JPY Plummets Below 181.50 as BoJ Rate Hike Looms

The EUR/JPY pair is declining below 181.50 due to emerging oversold RSI momentum, according to recent technical analysis.

In Monday's early European session, the cross weakened to near 181.20, with the Japanese Yen (JPY) strengthening against the Euro (EUR).

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

Aida added that after the September rate hike, the BoJ will likely follow up with another increase by January next year, then revert to a hike of around once every six months.