The Euro hit another record high against the Japanese Yen as growing concerns in the US economy continue to push the US dollar lower against the Euro.
Given the drop in USD/JPY, the rise in EUR/JPY is 100 percent a Euro story. The Bank of Japan has a monetary policy decision this evening. With consumer confidence and growth deteriorating at the same time that inflation is rising, the BoJ has no room to move on interest rates. This should keep pressure on the Japanese Yen against all of the major currencies. The fate of USD/JPY will depend on whether the losses in the stock market continue.