EUR/JPY Price Analysis: Yen starts to gain traction as BoJ gives more clues of a potential pivot

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EUR/JPY Price Analysis: Yen starts to gain traction as BoJ gives more clues of a potential pivot
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On Monday, the EUR/JPY traded in the 156.60 - 157.55 range. On the one hand, the Japanese Yen is trading with gains against most of its rivals, includ

Governor Ueda pointed out that a pivot may come by year’s end.On Monday, the EUR/JPY traded in the 156.60 - 157.55 range. On the one hand, the Japanese Yen is trading with gains against most of its rivals, including the USD, GBP, AUD, etc., mainly driven by a rise in Japanese Government Bond yields after Bank of Japan comments on monetary policy.

The 2- and 5-year JGB yields rose to their highest level since January, while the 10-year JGB rate broke above the 0.70% level. On the EUR side, markets await the ECB’s decisions on Thursday. The expectations are mixed as the World Interest Rates Probabilities tool suggests that markets discount nearly 40% odds of a 25 basis point hike and analysts predict that the decision will be a close call. In addition, Lagarde’s tone and the ECB’s statement will be closely watched for investors to look for clues regarding forward guidance.

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