- EUR/JPY bounces back from below 162.00 as German Friedrich Merz is confirmed as new Chancellor.
- German Merz failed to secure an absolute majority in the first voting process at the Bundestag.
- Trump’s tariff threats on pharmaceutical imports have increased the JPY’s safe-haven demand.
The EUR/JPY pair rebounds above 162.00 during the North American trading session after attracting bids near 161.60, which is the intraday low. The pair bounces back as Germany’s Conservative leader Friedrich Merz secures an absolute majority after getting 325 votes in the second attempt in the Bundestag, or the lower house of Parliament.
Friedrich Merz received 310 votes in the first attempt, six short of 316 required to be elected as Chancellor of Germany, despite the CDU/CSU and Social Democrats collectively commanding 326 votes in Bundestag.
The confirmation of Friedrich Merz as Chancellor has diminished fears of political instability and is expected to boost defense spending measures approved in March.
However, firm expectations that the European Central Bank (ECB) will reduce interest rates in the June policy meeting will limit the Euro’s (EUR) upside. The ECB is widely expected to cut interest rates by 25 basis points (bps). This would be the seventh interest rate cut by the ECB in a row. The reasoning behind firm ECB dovish bets is high conviction that the Eurozone inflation is on track to return to the central bank’s target of 2% by the year-end.
Meanwhile, the Japanese Yen (JPY) performs strongly as fresh tariff threats from United States (US) President Donald Trump have increased its safe-haven demand. Trump threatened to impose tariffs on pharmaceutical imports, which will be announced in two weeks.
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 | -0.22% | -0.55% | -0.59% | -0.23% | -0.14% | -0.45% | 0.22% | |
| EUR | 0.22% | -0.34% | -0.36% | -0.02% | 0.07% | -0.23% | 0.44% | |
| GBP | 0.55% | 0.34% | -0.04% | 0.32% | 0.44% | 0.11% | 0.81% | |
| JPY | 0.59% | 0.36% | 0.04% | 0.35% | 0.45% | 0.22% | 0.82% | |
| CAD | 0.23% | 0.02% | -0.32% | -0.35% | 0.09% | -0.22% | 0.48% | |
| AUD | 0.14% | -0.07% | -0.44% | -0.45% | -0.09% | -0.31% | 0.39% | |
| NZD | 0.45% | 0.23% | -0.11% | -0.22% | 0.22% | 0.31% | 0.69% | |
| CHF | -0.22% | -0.44% | -0.81% | -0.82% | -0.48% | -0.39% | -0.69% |
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).
On the domestic front, investors await the Bank of Japan (BoJ) monetary policy meeting minutes, which will be published on Wednesday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD fails to gather traction, remains below 1.1700
EUR/USD fails to gather momentum, trading below 1.1700 at the end of the week. The pair is pulled down by dwindling prospects for an EU-US trade accord, as US President Trump is expected to send a tariff letter to the European Union later today, while the continued demand for the US Dollar also keeps the risk complex under extra pressure.
Meme coins to watch as Bitcoin hits record high
Meme coins Bonk, Dogwifhat, and Floki are positioned to extend gains as the weekly recovery reaches crucial resistance levels. The meme coins gain bullish momentum on the back of Bitcoin’s (BTC) recovery run, hitting a new all-time high on Thursday.
Gold challenges two-week highs near $3,360
Gold gains upside impulse at the end of the week, trading near the $3,360 mark per troy ounce in respose to solid demand from te safe-haven space. Persistent trade uncertainty underpins the ongoing risk-off mood among investors, lending extra wings to the precious metal.
GBP/USD drops below 1.3500, flirts with three-week lows
GBP/USD continues its weekly retracement on Friday, trading at its lowest level in nearly three weeks below the 1.3500 support. The UK's poor GDP statistics drags on the British pound, while the US Dollar continues to profit from safe-haven flows, sending Cable and its risk-related peers to lower levels.
Week ahead – A storm of CPI data and China’s GDP in focus amid trade uncertainty
Dollar attracts safe haven flows amid trade anxiety. US inflation data could shake July Fed cut probability. UK, Canadian and Japanese CPI numbers also on tap. Weak Chinese growth may increase calls for more stimulus.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.