EUR/JPY Pulls Back from 12-Week Highs Amid ECB Decision Anticipation

The EUR/JPY currency pair has pulled back from its 12-week highs at 186.67, but remains above previous highs at 186.32. The Euro's correction lower comes as investors await the European Central Bank's (ECB) monetary policy decision later today.

The ECB is widely expected to leave its benchmark Rate on Deposit Facility unchanged at 2.25%, and keep the door open for further tightening due to rising oil prices and inflationary pressures.

The Japanese Yen, meanwhile, continues to struggle amid the interest rate gap between the Bank of Japan (BoJ) and other major central banks. The BoJ is reportedly ready to accelerate its monetary normalization cycle, but investors remain skeptical.