EUR/JPY edged down to around 177.90 in early European trade as the Yen firmed after Bank of Japan minutes reinforced expectations for further rate rises. The minutes said most policymakers judged additional increases appropriate as underlying inflation neared the 2% target. One board member also pointed to scope to accelerate tightening while assessing Middle East developments, stronger Artificial Intelligence-related demand and Foreign Exchange moves. A more hawkish European Central Bank stance was cited as a potential counterweight; Joachim Nagel indicated borrowing costs could rise next month, while economists look for a final move then and markets price tightening extending into 2027.
Euro Area Inflation And Growth Data
Separately, Eurostat data were cited showing euro area headline inflation at 4.0% year on year in October versus an expectation of 3.8%, above an ECB September projection of 3.6% average inflation in Q4. Excluding Ireland, GDP growth was 0.2%, with momentum described as easing since Q4-2025; a further 25bps hike in December was referenced, alongside an FXS Speechtracker score of 8.2 versus a historic 7.0. On the chart, price remains below the 100-day SMA, with RSI at 53.4; support sits at 176.90, then 175.70 and 175.30, while resistance is seen at 178.45, then 180.00 and 181.70.
