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EUR/JPY climbs toward 183.50 despite Japanese intervention risks
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FXStreet Forex & Commodities News
EUR/JPY has recovered its recent losses from the previous session, trading around 183.40 during the Asian hours on Thursday.
The upside of the currency cross could be restrained as the Japanese Yen (JPY) finds support from speculation that Japanese authorities may intervene to curb further currency weakness, alongside the Bank of Japan’s (BoJ) hawkish policy stance.
Rabobank’s RaboResearch reviews the Japanese Yen’s recent moves, pointing to a pullback in 10-year yields and the growing risk of official intervention as inflation and trade deficits widen.
Bank of Japan (BoJ) board members outlined their views on the policy outlook in the December Meeting Minutes released on Wednesday.
Members broadly agreed that the BoJ is likely to continue tightening if its economic and price forecasts are realized.