• EUR/JPY drifts lower amid bets for another ECB interest rate cut later this Thursday.
• The BoJ uncertainty and a positive risk tone cap the JPY, lending support to EUR/JPY.
• Traders keenly await the ECB rate decision and cues about the further policy path.

The EUR/JPY cross attracts fresh sellers during the Asian session on Thursday, with bears still awaiting a sustained break below the 162.00 mark before positioning for an extension of the recent pullback from the 163.55-163.60 supply zone. 

The shared currency continues to be undermined by firming expectations that the European Central Bank (ECB) will cut the deposit rate by 25bps later today, marking the first back-to-back rate reduction in 13 years. This will reflect the ECB's urgency to accelerate monetary amid easing inflationary pressures in the Eurozone and signs of economic weakness. Meanwhile, the risk of a further escalation of geopolitical tensions in the Middle East and a broader regional war drives some haven flows towards the Japanese Yen (JPY). This further contributes to the offered tone surrounding the EUR/JPY cross. 

Meanwhile, data published by Japan's Ministry of Finance on Thursday showed that total exports in September declined for the first time in 10 months and raised concerns about weakness in global demand. Against the backdrop of a surprise opposition to further rate hikes by Japan's Prime Minister Shigeru Ishiba, the outlook complicates the Bank of Japan's (BoJ) plans to exit years of ultra-easy monetary policy. This, in turn, holds back the JPY bulls from placing aggressive bets and should help limit any further depreciating move for the EUR/JPY cross heading into the key central bank event risk.