EUR/JPY declines as BoJ hawkish tone supports Yen, ECB stability limits Euro losses
|- The EUR/JPY cross trades around 183.80 on Monday, down 0.25% at the time of press.
- The Japanese Yen strengthens after signals pointing to additional rate hikes by the Bank of Japan.
- Expectations that the ECB’s rate-cut cycle is nearing an end could limit the Euro’s downside.
EUR/JPY trades lower and hovers around 183.80 on Monday at the time of writing. The move reflects renewed strength in the Japanese Yen (JPY), supported by the latest signals from the Bank of Japan (BoJ), while the Euro (EUR) tries to hold its ground amid a more stable outlook for monetary policy in the Eurozone.
The Japanese currency benefits from the release of the Bank of Japan’s Summary of Opinions from the December monetary policy meeting. Policymakers discussed the need to continue tightening policy even after the rate hike delivered in December. The Bank of Japan raised its policy rate from 0.50% to 0.75%, the highest level in decades, and several members believe that rates remain too low relative to inflation. Some also noted that the weak Japanese Yen and rising long-term yields are partly due to an overly accommodative stance, reinforcing expectations of further rate hikes in 2026 and lending support to the JPY.
On the European side, the picture is more mixed. The European Central Bank (ECB) kept interest rates unchanged earlier this month and hinted that they are likely to remain steady for some time. ECB President Christine Lagarde has stressed that the central bank cannot provide clear forward guidance given the high level of uncertainty, favoring a data-dependent, meeting-by-meeting approach.
Money markets are now pricing in less than a 10% chance of a 25-basis-point rate cut by the European Central Bank in February. This perception that the current easing cycle is approaching its end helps limit downside pressure on the Euro.
Overall, the Bank of Japan’s more hawkish tone continues to weigh on the EUR/JPY cross, while expectations of policy stability at the European Central Bank act as a near-term balancing factor.
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 New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.02% | 0.09% | -0.19% | 0.14% | 0.32% | 0.58% | 0.12% | |
| EUR | -0.02% | 0.07% | -0.20% | 0.12% | 0.30% | 0.58% | 0.11% | |
| GBP | -0.09% | -0.07% | -0.25% | 0.05% | 0.23% | 0.50% | 0.03% | |
| JPY | 0.19% | 0.20% | 0.25% | 0.30% | 0.51% | 0.75% | 0.26% | |
| CAD | -0.14% | -0.12% | -0.05% | -0.30% | 0.19% | 0.44% | -0.01% | |
| AUD | -0.32% | -0.30% | -0.23% | -0.51% | -0.19% | 0.25% | -0.19% | |
| NZD | -0.58% | -0.58% | -0.50% | -0.75% | -0.44% | -0.25% | -0.45% | |
| CHF | -0.12% | -0.11% | -0.03% | -0.26% | 0.01% | 0.19% | 0.45% |
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).
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