EUR/JPY Nears Breakout as ECB Rate Hike Widens Yield Gap

The EUR/JPY pair has held steady around 185.60, trading above key moving averages and the volume‑weighted average price. Technical analysis shows it approaching the upper edge of a symmetrical triangle near 185.60, suggesting a potential bullish breakout toward the all‑time high of 187.95 if support holds.

The move is underpinned by the European Central Bank’s recent rate hike, which widened the Euro‑Yen yield differential to about 190 basis points. The Bank of Japan’s gradual normalization keeps Japanese rates low, sustaining the Euro’s carry‑trade appeal. Market participants are watching ECB commentary and BoJ signals for further clues, while risk sentiment—whether risk‑on or risk‑off—remains a key driver of short‑term price action.