Euro Rebounds Against Yen as BoJ Holds Rates and Eurozone Inflation Supports

The Bank of Japan maintained its short-term interest rate target at 0.25% during its two-day policy meeting, a decision widely anticipated by markets.

The yen weakened following the announcement, as traders had priced in no immediate change and focused on the BoJ's cautious tone.

The euro benefited from the yen's softness, with the EUR/JPY pair climbing to a session high after Eurozone inflation data came in as expected, showing consumer prices rose 2.4% year-on-year.