EUR/JPY is going down today, hovering in the mid-180s. Sellers are showing up as the Japanese Yen gets a little boost from talk about possible government intervention. Still, the pair isn’t dropping much—everyone’s just waiting to see what Germany’s latest GDP numbers have to say.
Intervention Talk Puts Yen in the Spotlight
There’s been a fresh round of intervention rumours, and that’s helped the Yen. Japan’s finance minister made it clear they’re ready to step in if the currency gets too wild. Other officials have hinted at the same thing. They don’t want the Yen to get too weak and mess with the economy.
Meanwhile, the Bank of Japan hasn’t ruled out a rate hike in December. Governor Ueda pointed out the obvious: a weaker Yen pushes inflation higher, and inflation’s already been running above target for years. So, between intervention talk and the chance of a rate hike, the Yen’s got some support, which keeps EUR/JPY from climbing.
Japan’s Fiscal Worries Keep the Yen in Check
Even with all this intervention talk, there’s a ceiling on how much the Yen can rally. Japan just approved a massive 21.3 trillion Japanese Yen stimulus package, and people are worried about the country’s debt piling up. Plus, the economy actually shrank in Q3. That’s making the Bank of Japan cautious, and you can see it in higher Japanese bond yields. All this stuff puts the brakes on any big Yen surge.
ECB Keeps Euro Steady
On the other side, the Euro isn’t exactly falling apart. The market thinks the European Central Bank has stopped cutting rates for now, and that’s helping the Euro hang in there. So, EUR/JPY isn’t tanking. Most traders are just watching and waiting for Germany’s final Q3 GDP numbers, hoping for a signal about where the pair heads next.
