EUR/JPY jumps above 182.00 as Japanese Yen underperforms, ECB-BoJ policy eyed

EUR/JPY snaps two-day losing streak and rises to near 182.15 amid weakness in the Japanese Yen.
This week, the ECB is expected to leave interest rates unchanged, while the BoJ seems to raise them by 25 bps.
The German IFO Business Climate unexpectedly dropped to 87.6 in December from 88.0 prior.

Sagar Dua FXStreet

The EUR/JPY pair is up 0.25% to near 182.15 during the European trading session on Wednesday. The pair trades higher as the Japanese Yen (JPY) underperforms its major pairs, despite traders remaining confident that the Bank of Japan (BoJ) will raise interest rates in its monetary policy meeting on Friday.

Japanese Yen Price Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.26%	0.68%	0.48%	0.23%	0.18%	0.18%	0.12%
EUR	-0.26%		0.40%	0.20%	-0.04%	-0.09%	-0.09%	-0.14%
GBP	-0.68%	-0.40%		-0.19%	-0.45%	-0.49%	-0.49%	-0.55%
JPY	-0.48%	-0.20%	0.19%		-0.24%	-0.29%	-0.30%	-0.35%
CAD	-0.23%	0.04%	0.45%	0.24%		-0.05%	-0.06%	-0.11%
AUD	-0.18%	0.09%	0.49%	0.29%	0.05%		-0.00%	-0.06%
NZD	-0.18%	0.09%	0.49%	0.30%	0.06%	0.00%		-0.06%
CHF	-0.12%	0.14%	0.55%	0.35%	0.11%	0.06%	0.06%

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).

The BoJ is expected to hike borrowing rates by 25 basis points (bps) to 0.75% as comments from Bank of Japan (BoJ) Governor Kazuo Ueda, came last week, signaled that the central bank is “closer to attaining its inflation target”, adding that the odds of “central bank's baseline economic and price outlook materializing had been gradually increasing”.

Given firm market expectations that the BoJ will tighten its monetary conditions, investors will look for comments about the timeframe for the next interest rate hike.

While the Euro (EUR) trades higher against the JPY, it is underperforming its other peers ahead of the European Central Bank’s (ECB) monetary policy decision on Thursday. The ECB is widely anticipated to keep the Deposit Facility Rate steady at 2% as a majority of officials have stated lately that there is no need for monetary policy adjustment as inflation is close to the central bank’s target of 2%. Investors will pay close attention to cues regarding how long the ECB will hold interest rates at their current levels.

On the economic front, the German business morale has surprisingly dropped in December. Earlier in the day, the German IFO Institute's Business Climate Index came in lower at 87.6 from 88.0 in November, while it was expected to improve to 88.2.

Economic Indicator

ECB Rate On Deposit Facility

One of the European Central Bank's three key interest rates, the rate on the deposit facility, is the rate at which banks earn interest when they deposit funds with the ECB. It is announced by the European Central Bank at each of its eight scheduled annual meetings.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY drops to an over one-month low, around 156.00 after Japan's CPI report

USD/JPY attracts heavy follow-through selling on Friday, dropping to the 156.00 neighborhood, a one-month low, as Japan's National CPI report reaffirms bets for an imminent BoJ rate hike and boosts the Japanese Yen. Moreover, the recent steep fall in US bond yields counters hawkish Fed expectations and geopolitical risks, undermining the US Dollar and exerting additional pressure on the currency pair.

Gold seems vulnerable near August lows; eyes $4,000 break amid Fed hike bets

Gold touches a fresh low since early August during the Asian session on Friday, eyeing the key $4,000 psychological mark. Oil-driven inflation fears reinforce December Fed hike bets and continue to undermine the non-yielding bullion, which fails to benefit from the recent steep fall in US bond yields and the prevailing US Dollar selling bias. Moreover, the overnight breakdown below a trading-range support backs the case for further depreciation.

Bitcoin falls 4% as chip stocks plunge 6.7% and oil surges

Bitcoin (BTC) fell below $82,000 on Thursday as the crypto market joined a broader market sell-off driven by concerns over artificial intelligence (AI) spending, rising oil prices and escalating geopolitical tensions involving the US and Iran. The top crypto fell 4% to $81,130 as macro fears weighed on prices across the digital asset market.

The Bank of England just got its clearest reason to hike. Here's what it's really watching

UK inflation as measured by the CPI accelerated to 3.5% YoY in September, up from 3.1% in August, according to the Office for National Statistics. This is the highest level since October 2025, exceeding economists' expectations of 3.4% and pushing inflation further from the BoE's 2% target.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.