**BREAKING: EUR/JPY Slides Below 185.00 as Eurozone Inflation Data Weakens Rate Hike Expectations**
The EUR/JPY cross is trading under pressure at 184.95 during early European hours Thursday, slipping below the key 185.00 level following disappointing inflation data from the Eurozone. June inflation figures came in below consensus forecasts, significantly reducing market expectations for an ECB rate hike at the upcoming July 23 policy meeting.
The softer-than-expected inflation print is weakening the euro against the Japanese yen as traders reassess the European Central Bank’s monetary policy trajectory. Markets had previously priced in potential tightening measures, but today’s data suggests the ECB may adopt a more cautious stance. Despite the intraday weakness, technical analysts note the currency pair maintains a near-term bullish bias, suggesting current downside may be limited.
Forex traders should monitor upcoming ECB commentary closely as policymakers digest this inflation data ahead of their July meeting. The pair’s ability to hold above 184.50 will be critical for maintaining bullish momentum.
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FXnCO Insight
** Traders should consider defensive positioning on EUR/JPY ahead of the July 23 ECB meeting, as dovish surprises could accelerate downside toward 184.00 support.
Source: FXStreet