EUR/JPY plunges below 166.00 as the BoJ leaves rates unchanged

• EUR/JPY drops to around 165.85 in Thursday's Asian session. 
• The BoJ decided to leave policy settings unchanged at its October meeting on Thursday.
• The Eurozone economy grew 0.4% QoQ in Q3, stronger than expected

The EUR/JPY cross attracts some sellers to near 165.85 during the Asian session on Thursday. The Bank of Japan (BoJ) decided to keep its policy rate unchanged, as widely expected.

The Bank of Japan (BOJ) decided to keep the short-term interest rates target unchanged at 0.25% on Thursday and reiterated its forecast that inflation will persist near the 2% target. The upside for the Japanese Yen might be limited amid the uncertainty about Japan's fiscal and monetary policy outlook. "Any strengthening of the yen at present would likely result from a general weakening of the U.S. dollar if interest rates begin to align," noted Sean Teo, a sales trader at Saxo.

Market players will shift their attention to the press conference by BoJ Governor Kazuo Ueda, which might offer some hints about the interest rate path in Japan. Meanwhile, the cautious mood ahead of the US presidential election next week could boost the safe-haven flows, benefiting the JPY. 

On the Euro (EUR) front, the encouraging Eurozone flash Gross Domestic Product (GDP) for the third quarter (Q3) might help limit the EUR's losses. Data released by Eurostat on Thursday showed that the Eurozone economy grew 0.4% QoQ in Q3, stronger than the 0.2% expected. On an annual basis, the Eurozone GDP expands by 0.9% in Q3, above the market consensus of 0.8%.