EUR/JPY Slides as BoJ Rate Hike Expectations Grow

The EUR/JPY currency pair is trading in negative territory around 179.10 during the early European session on Friday, according to FXStreet. The Japanese Yen (JPY) is gaining support against the Euro (EUR) due to expectations of a Bank of Japan (BoJ) rate hike next week.

Analysts polled by Reuters anticipate the BoJ to raise the interest rate to 1.25% at the September 17-18 meeting, and further hikes are expected in the coming months. This would bring the BoJ's policy rate to levels unseen in 31 years.

The Japanese Yen central bank may signal faster future tightening if price pressures heighten risks of an inflation overshoot, Reuters said.