EUR/JPY Plunges Amid Tightening Expectations and Intervention Speculation

The EUR/JPY currency pair is experiencing downward pressure as expectations of tighter monetary policy by the Bank of Japan increase demand for the yen and put a squeeze on the euro.

Speculation about potential Japanese government intervention in FX markets is also contributing to the strength of the yen against the euro, with investors pricing in possible government action that typically results in a stronger yen.

The EUR/JPY pair trades below key moving averages and is expected to move within ¥177.26 to ¥180.1 over the next 2 to 3 days, with a 79% chance of further declines.