EUR/JPY slips below 163.00 as trade-related uncertainties benefit the safe-haven JPY

Source Fxstreet
  • EUR/JPY attracts some sellers on Monday amid reviving demand for the safe-haven JPY.
  • Subdued USD demand offers support to the Euro, which could limit losses for the cross.
  • The divergent BoJ-ECB policy expectations warrant some caution for bullish traders.

The EUR/JPY cross kicks off the new week on a weaker note and moves away from over a three-week top, around the 163.75 area touched on Friday. The downward trajectory drags spot prices back below the 163.00 mark during the Asian session, though it lacks bearish conviction.

Mixed signals from the US and China temper hopes for an immediate de-escalation of trade tensions between the world's two largest economies. In fact, US Treasury Secretary Scott Bessent said on Sunday that he did not know if US President Donald Trump had talked to Chinese President Xi Jinping. Moreover, China has repeatedly denied any ongoing tariff talks with the US. This, in turn, benefits the Japanese Yen's (JPY) relative safe-haven status and exerts some downward pressure on the EUR/JPY cross.

Investors, however, remain hopeful about the possibility of an eventual US-China trade deal. Moreover, market participants now seem to have pushed back their expectations for an immediate interest rate hike by the Bank of Japan (BoJ) due to economic risks from US tariffs. This, in turn, holds back the JPY bulls from placing aggressive bets. Furthermore, subdued US Dollar (USD) price action lends some support to the shared currency and could limit any meaningful downfall for the EUR/JPY cross.

Meanwhile, signs of broadening inflation in Japan keep the door open for more BoJ rate hikes this year. In contrast, the European Central Bank (ECB) earlier this month warned that economic growth will take a big hit from US tariffs and bolstered the case for further policy easing in the months ahead. This, in turn, suggests that the path of least resistance for the EUR/JPY cross is to the downside. However, the recent breakout above the 200-day Simple Moving Average (SMA) warrants caution for bears.

Japanese Yen PRICE Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Swiss Franc.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.04% 0.03% -0.16% -0.01% -0.03% -0.12% -0.24%
EUR 0.04% 0.00% -0.13% 0.00% -0.09% -0.09% -0.23%
GBP -0.03% -0.01% -0.15% 0.01% -0.11% -0.11% -0.23%
JPY 0.16% 0.13% 0.15% 0.17% 0.17% -1.36% 0.18%
CAD 0.01% -0.01% -0.01% -0.17% -0.13% -0.11% -0.22%
AUD 0.03% 0.09% 0.11% -0.17% 0.13% 0.00% -0.13%
NZD 0.12% 0.09% 0.11% 1.36% 0.11% -0.00% -0.12%
CHF 0.24% 0.23% 0.23% -0.18% 0.22% 0.13% 0.12%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Aug 22, 2023
Prioritize filling the $27,000 gap and even try higher.
placeholder
Elon Musk’s xAI and Neuralink Launch New Funding Rounds​Billionaire Elon Musk recently raised funds for his two high-profile tech companies, xAI and Neuralink.
Author  Insights
Jun 03, 2025
​Billionaire Elon Musk recently raised funds for his two high-profile tech companies, xAI and Neuralink.
placeholder
Markets in 2026: Will gold, Bitcoin, and the U.S. dollar make history again? — These are how leading institutions thinkAfter a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
Author  Insights
Dec 25, 2025
After a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
placeholder
Silver Price Forecasts: XAG/USD extends its reversal below $76.00Silver (XAG/USD) is trading lower in an otherwise calm market session on Thursday.
Author  FXStreet
Jan 08, Thu
Silver (XAG/USD) is trading lower in an otherwise calm market session on Thursday.
placeholder
Gold Price Forecast: Can Gold Hold $4,020 as Fed Rate Hike Expectations Rise? As of the Asian session on July 30, gold prices ( XAUUSD) surged and then retraced following the Federal Reserve meeting, once falling to $4,028.62 during the session. From a market persp
Author  TradingKey
Jul 30, Thu
As of the Asian session on July 30, gold prices ( XAUUSD) surged and then retraced following the Federal Reserve meeting, once falling to $4,028.62 during the session. From a market persp
Related Instrument
goTop
quote