Euro: Support at 180 eyed against Yen on BoJ risk - DBS | FXStreet

DBS strategist Philip Wee argues that the downside risk for EUR/JPY is more complicated than for CHF/JPY. He points to support for the euro, citing EUR strength versus the Swiss franc and British pound and an “anti-USD” trade theme, as markets price rate hikes from both the European Central Bank (ECB) and the Bank of Japan (BoJ). However, he warns EUR/JPY could slip below 180 if the BoJ accelerates its normalization. Markets reportedly assign a 95–100% probability of rate hikes at Thursday’s ECB meeting and next week’s BoJ meeting. The key risk, Wee says, is BoJ guidance that quickens the path toward normalization.