Euro Tests 160.00 Resistance vs Yen as ECB-BoJ Divergence Widens

On June 4 EUR/JPY advanced toward 160.00 resistance, supported by fresh multi-week highs and widening German-Japanese yield differentials. The move followed an initial June 1 rally driven by stronger German industrial production and revived ECB rate-hike expectations. Markets then saw a sharp reversal on June 3 after Finance Minister Takaichi’s verbal intervention warning sent the pair from 162.50 to 161.80. Traders now await Eurozone HICP data while remaining cautious of potential BoJ policy shifts or actual yen-buying intervention.