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Why Is EUR/JPY Rising After BoJ Decision? | Key Factors Driving the Cross to 161.50

The What is a meme coin used forEUR/JPY currency pair continues its upward trajectory in Tuesday's European trading session, currently hovering around the 161.50 level. This movement comes immediately after the Bank of Japan's (BoJ) widely anticipated decision to maintain its current monetary policy framework during its January meeting.Market participants observed three significant developments from Tokyo:1. The BoJ maintained its negative interest rate of -0.1%2. Yield curve control parameters remain unchanged with 10-year JGB yield ceiling at 1.0%3. Revised downward their core inflation forecast for fiscal year 2024 to 2.4% from previous 2.8% estimateCurrency traders are particularly focused on upcoming remarks from BoJ Governor Kazuo Ueda, who may provide crucial hints about the timeline for potential policy normalization. Most analysts project any shift away from negative rates won't occur before April's policy meeting at the earliest.Meanwhile, attention shifts to Frankfurt where the European Central Bank (ECB) prepares for its Thursday policy announcement. ECB President Christine Lagarde previously indicated during Davos discussions that any potential rate adjustments would likely wait until summer 2024. Current market pricing suggests:- 65% probability of first rate cut in April- Expected total easing of 135 basis points through 2024Several important economic indicators will be released before the ECB decision:- German and Eurozone HCOB PMI data (Wednesday)- Japanese trade balance figuresThese releases, combined with Thursday's ECB press conference, could provide substantial volatility and trading opportunities for EUR/JPY participants. The cross remains sensitive to diverging monetary policy expectations between the Eurozone and Japan, with technical resistance seen near the 162.00 psychological level.Market technicians note that sustained trading above 161.50 could open the path toward testing yearly highs, while failure to hold current levels might see a retracement toward the 160.80 support zone. Traders should monitor volume patterns and macroeconomic developments closely in coming sessions.