EUR/USD dips below 1.05 again as EUR/JPY gives up on 160

The EUR/USD has dipped back underneath the 1.05 handle again and that move is seemingly being driven right now by a corresponding move lower in the EUR/JPY. The EUR/JPY was trading above 160.50 earlier today. The high seen was set at 160.55 and it had closed last night at 160.01. The recent recovery from the lows seen on December 3 had reached 160.65 yesterday. The low set on December 3 was at 156.18. The thing about today and next week is we have monetary policy meetings from ECB today and then from the BOJ this time next week. So, what if the ECB cuts and the BOJ conversely raises rates next week? Well, you can probably work that out for yourself, but of course it does have major implications for the EUR/JPY going forward. The pair has just dropped back below 160 again a moment ago and that move has been served up by the EUR/USD dropping below the 1.05 handle, at the same time as the USD/JPY falls back towards 152.25. Hence, this is entirely down to the EUR/JPY as to why the EUR/USD moved lower. It is currently trading at 159.93