EUR/JPY Price Forecast: Softens to near 185.50, but maintaining constructive bias above 100-day SMA
The EUR/JPY cross trades with mild losses near 185.60 during the early European session on Monday.
During the early European session on Monday, the EUR/JPY cross traded with mild losses near 185.60, reflecting the softening of the price forecast. However, the currency pair maintained a constructive bias above the 100-day simple moving average (SMA). In July, Japan's headline Consumer Price Index (CPI) inflation accelerated, reaching 1.9% YoY from 1.6% in June, indicating the strongest level so far this year.
The core CPI, which excludes volatile fresh food prices, also rose 1.8% YoY in July, up from 1.6% prior. This data supports the likelihood of another interest rate hike by the Bank of Japan (BoJ). Markets have currently priced an 82% chance of a September rate increase, more than tripling from about 23% before the BoJ's July policy meeting.
Traders await BoJ Deputy Governor Ryozo Himino's speech on Thursday, which may provide insight into the pace of rate hikes. Any hawkish remarks from BoJ policymakers could support the Japanese Yen (JPY) and create headwinds for the EUR/JPY cross.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
