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The EUR/JPY currency cross has extended its gains for the second consecutive session, trading near 183.10 during Asian hours. The pair's rise is driven by the Japanese Yen's weakness, as the Bank of Japan (BoJ) is widely anticipated to maintain its benchmark interest rate at 0.75% on Thursday. This decision aligns with the BoJ's recent dovish stance, which has kept monetary policy accommodative despite global inflationary pressures. For forex markets, the BoJ's rate hold reinforces the Yen's underperformance against majors like the Euro. Traders are closely monitoring whether the BoJ will signal any policy shifts in the coming months, as prolonged ultra-loose monetary policy could further weaken the Yen. The EUR/JPY's technical outlook remains bullish, with 183.00 acting as a key support level. Looking ahead, investors should watch the BoJ's post-meeting statement for hints on future rate trajectory. A surprise tightening could trigger Yen strength, while a prolonged hold may push EUR/JPY toward 185.00. Broader central bank divergence between the BoJ and other major banks will remain a key driver for this cross.
