EUR/JPY weakens as ECB holds rates and BoJ hike bets support the Yen

The Euro (EUR) is on the back foot against the Japanese Yen (JPY) as the European Central Bank (ECB) decided to hold interest rates unchanged. This decision did not weaken the Yen, which remains supported by strong expectations of a rate hike from the Bank of Japan (BoJ) on Friday. Traders are closely monitoring the implications of the ECB's policies while keeping an eye on the BoJ's potential policy changes, particularly regarding interest rate movements. Given this backdrop, there could be increased selling pressure on EUR/JPY in the short-term; however, more data is needed for establishing a sustainable trend.