EUR/JPY keeps slipping, almost brushing up against 180.00 on Wednesday morning in Europe. The Yen’s picking up steam, and honestly, it all comes down to nerves—traders don’t want to get caught flat-footed if Japan’s officials suddenly step in to boost the currency. Finance Minister Katayama only added fuel to the fire. He said he’s “alarmed” by the Yen’s moves and wants rates actually to match what’s happening in the real economy. That was enough to push the Yen even higher.
Uncertainty Swirls Around BoJ Policy
What comes now from Japan’s central bank? Hard to tell. Governor Kazuo keeps hinting that they’ll ditch the super-easy-money stance. He might lift rates if the numbers back it up. Yet PM Takaichi pushes back, wanting cheap loans to boost the economy. So what happens? Markets stay confused – will Yen gain strength or fade fast?
ECB Moves Carefully, Giving the Euro a Little Lift
Over in Europe, the ECB hasn’t touched rates since June 2025, and nobody expects them to shake things up anytime soon. The economy’s steady, policymakers aren’t rushing to make changes, and a lot of analysts figure the ECB is done cutting rates for now. That’s giving the Euro a bit of support, at least for the time being.
Bottom line: EUR/JPY probably stays jumpy. Everyone’s watching for any hint of Japanese intervention or a new signal from the BoJ.
