EUR/JPY remains subdued around 165.50 following BoJ Meeting Minutes, awaits Eurozone PMI

• EUR/JPY faces downward pressure following hawkish meeting minutes from BoJ.
• BoJ Meeting Minutes showed that members were largely in agreement on continuing to raise interest rates.
• Traders await PMI data for Germany and the Eurozone and speeches from ECB officials on Wednesday.

EUR/JPY maintains its position near 165.50 during the Asian trading hours on Wednesday as the Japanese Yen (JPY) gained support from hawkish minutes of the Bank of Japan's (BoJ) most recent meeting. The minutes showed that board members were largely in agreement on continuing to raise interest rates, as inflation and economic conditions align with the central bank's objectives.

The Jibun Bank Japan Services Business Activity Index fell to 49.7 in October, down from 53.1 in September, signaling a decline in services activity. This marks the first contraction since June, although it was marginal, with companies reporting slower sales.

The positive Eurozone Gross Domestic Product (GDP) data led traders to scale back expectations for a larger-than-usual interest rate cut at the December policy meeting. However, markets still anticipate the European Central Bank (ECB) will reduce the Deposit Facility Rate by the usual 25 basis points (bps) in December.

PMI data for Germany and the Eurozone is set to be released on Wednesday, and traders will shift their focus to speeches from European Central Bank (ECB) President Christine Lagarde and Vice President Luis de Guindos later in the day.

Regarding the US presidential election, early exit poll results from Wisconsin indicate a lead for Republican candidate Donald Trump, with 56% of the vote compared to 42.5%, based on 7.5% of expected votes counted. In North Carolina, exit polls show a tight race between Trump and Kamala Harris, with 50% of the votes counted. In Michigan, with 12% of votes counted, Harris' lead has shrunk from 61% to 53%.