⚡ EUR/JPY Price Forecast: Declines below 181.50 with emerging oversold RSI

**BREAKING: EUR/JPY Slides Below 181.50 on BoJ Rate Hike Speculation**

The EUR/JPY cross tumbled into negative territory during early European trading Monday, falling to approximately 181.20 as the Japanese Yen gained strength against the Euro. The decline pushed the pair below the 181.50 level, with technical indicators showing the Relative Strength Index approaching oversold conditions.

The Yen’s surge comes as Japanese officials signal a potential Bank of Japan rate hike within January, marking a hawkish shift that’s catching trader attention. This policy tightening expectation is drawing capital flows back toward the Japanese currency, pressuring euro-denominated positions.

Currency traders and brokers should monitor the oversold RSI carefully, as this technical setup could trigger short-term positioning adjustments. The move affects institutional forex desks, retail FX platforms, and Japanese export-focused portfolios exposed to euro-yen fluctuations.

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FXnCO Insight

** Traders should watch for potential mean reversion opportunities if EUR/JPY remains oversold, but avoid catching falling knives until BoJ policy clarity emerges later this month.

Source: FXStreet