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
Silver Price Forecast: XAG/USD falls like house of cards on Fed’s hawkish narrativeSilver price (XAG/USD) is down 4.3% to near $61.50 during the European trading session on Monday. The white metal nosedives as elevated United States (US) Treasury Yields have diminished its appeal.
Author  FXStreet
9 hours ago
Silver price (XAG/USD) is down 4.3% to near $61.50 during the European trading session on Monday. The white metal nosedives as elevated United States (US) Treasury Yields have diminished its appeal.
placeholder
Gold Falls Below $4,200 in Single-Day Drop of Over $100: Why Are Gold Prices Plunging? As of the Asian session on September 28, international gold prices continued their recent weakness, with spot gold (XAUUSD) falling below $4,200 intraday to a low of $4,179.42, down over
Author  TradingKey
9 hours ago
As of the Asian session on September 28, international gold prices continued their recent weakness, with spot gold (XAUUSD) falling below $4,200 intraday to a low of $4,179.42, down over
placeholder
Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decisionThe US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
Author  Mitrade
11 hours ago
The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
placeholder
Brent edges toward $99 as Trump rejects Iran's Hormuz proposal — why the war-risk premium won't rebuildBrent crude rose 0.92% to $98.51 and WTI gained 1.15% to $93.51 after President Trump rejected Iran's seven-day proposal to reopen the Strait of Hormuz. But both benchmarks remain about 12% below their early-September highs, because supply never actually stopped. Hormuz flows ran at 33.7 million barrels this week, in line with the prior week, and Saudi Arabia's East-West pipeline restarted on September 22.
Author  Suzie
12 hours ago
Brent crude rose 0.92% to $98.51 and WTI gained 1.15% to $93.51 after President Trump rejected Iran's seven-day proposal to reopen the Strait of Hormuz. But both benchmarks remain about 12% below their early-September highs, because supply never actually stopped. Hormuz flows ran at 33.7 million barrels this week, in line with the prior week, and Saudi Arabia's East-West pipeline restarted on September 22.
placeholder
Middle East War updates: Trump says he expects renewed Iran talks this weekHere’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.
Author  FXStreet
17 hours ago
Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.
Related Instrument
goTop
quote