Investors may be starting to look for a lower EUR/JPY now. Our models suggest that the Yen is more undervalued than the Euro, and some potentially dovish rhetoric looks to be offset by a Bank of Japan preparing to pull the trigger on a rate hike.

Important Japanese wage data is released on March 15th and is likely to raise speculation that the BoJ will hike rates at the April 26th meeting, although some are now talking of a hike on March 19th (that seems too early for us).

EUR/JPY is starting to break lower, and 160.00 looks like a good short-term target.