EUR/JPY appreciates beyond 160.00 on dovish comments from BoJ officials

• The Japanese Yen slid after BoJ officials put next week's rate hike into question.
•  BoJ policymakers affirmed that they see little cost in waiting for the next rate hike, according to Bloomberg.
• Market expectations of a dovish ECB cut on Thursday might hamper the Euro rally.

The Japanese Yen is depreciating across the board on Wednesday, as comments from BoJ policymakers have cast doubt on a widely expected 25 bps rate hike next week. That has boosted the EUR/JPY to test the resistance area at 1.6030.

A Bloomberg report reported on Wednesday comments from BoJ officials observing that they "little cost in waiting for the next rate hike” as, in their opinion, the risks of a weak yen pushing up inflationary pressures have eased.

The officials affirmed that they would not vote against a rate hike in December if proposed, but they did not avoid the negative reaction in the  Japanese Yen

The EUR/JPY rallied about 170 pips after the news to reach a resistance area at 160.30, which, so far, is holding bulls. The ECB is widely expected to cut rates by 25 bps on Tuesday and might hint towards more easing in the light of the weak German economic outlook and the political uncertainty in Germany and France. This is likely to weigh on the pair.