The European Central Bank versus the Bank of Japan – who will win? Both are pursuing a “competitive devaluation” strategy through monetary stimulus, both desperately need the boost a lower currency can deliver to their respective economies. Over the last 7 months, the ECB has the edge, but that may change very soon. The BoJ boosted EUR/JPY with its announcement last Friday of negative cash rates. EUR/JPY jumped. However, the pair had already risen from 128 to 130, and as markets realised the transmission mechanism (the carry tradfe) was largely sidelined the initial enthusiasm for selling JPY faded, and EUR/JPY slid over this week.