EUR/JPY edges lower as BoJ hawkish tone boosts Yen, ECB limits Euro downside

EUR/JPY is trading at 183.50 at the time of writing, reflecting a minor decline of 0.15% on the day as markets are experiencing lower volumes ahead of year-end holidays. This decrease corresponds with a modest rebound in the Japanese Yen, bolstered by a hawkish tone from the Bank of Japan (BoJ). The recent signals from the BoJ indicate a potential tightening of monetary policy, prompting increased buying interest in yen. Conversely, the European Central Bank (ECB) is limiting the downside for the Euro, which could prevent further declines in EUR/JPY amidst the current market context. Traders should closely monitor upcoming central bank decisions as they strategize for the shifting dynamics during this low liquidity period.