The euro weakened against the Japanese yen as firm expectations of a Bank of Japan (BoJ) rate increase supported the Japanese currency ahead of the central bank’s policy meeting. A hike would narrow the yield gap between Japan and other major economies and could unwind yen-funded carry trades, in which investors borrow yen to buy higher-yielding assets. The move contrasts with a more cautious monetary-policy stance from the European Central Bank (ECB), amid sluggish eurozone growth and inflation concerns. The yen’s appreciation could pressure Japanese exporters while benefiting importers, and a BoJ decision could affect Japanese government bond yields, global rate expectations and currency-market volatility. Traders continue to monitor EUR/JPY support near 158.00 and resistance around 160.50, as well as central-bank communications and economic data.