EUR/JPY Price Forecast: Softens to near 179.00, bearish bias remains intact below 100-day SMA
The EUR/JPY cross trades in negative territory around 179.10 during the early European session on Friday. The expectation of a Bank of Japan (BoJ) rate hike next week provides some support to the Japanese Yen (JPY) against the Euro (EUR).
On Friday, the EUR/JPY exchange rate traded in negative territory around 179.10 during the early European session. Analysts anticipate a Bank of Japan (BoJ) rate hike to 1.25% during the September 17-18 meeting and an additional rise to 1.75% in Q2 of 2027. The BoJ's policy rate may reach levels unseen in 31 years, according to Reuters.
Traders will pay close attention to any hints from Governor Kazuo Ueda’s press conference regarding future rate hikes and the central bank's tightening capacity. Strategists at Brown Brothers Harriman note that BoJ board member Kazuyuki Masu has expressed a hawkish bias, arguing that the Bank needs to raise the policy interest rate further towards the neutral range of 1.10% to 2.50%.
While the EUR/JPY pair is sliding below both the 20-day Bollinger simple moving average and the 100-day simple moving average, the downside support appears to be at the September 10 low of 178.42, with the Bollinger lower band at 177.80.
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