EUR/JPY rebounds from lows as Trump signals easing tensions in the Middle East
- EUR/JPY recovers from earlier lows but still posts daily losses.
- Trump signals a temporary pause in US military action against Iran.
- Easing safe-haven demand weighs on the JPY, though caution persists.
EUR/JPY rebounds from its intraday lows but remains down 0.30% on Monday, trading near 183.65 at the time of writing, as the Japanese Yen (JPY) loses some ground following signs of geopolitical de-escalation.
The pair initially came under pressure as rising tensions in the Middle East boosted demand for safe-haven assets. However, sentiment improved after comments from US President Donald Trump, reported by Reuters, suggesting a potential easing of hostilities with Iran. Trump stated that the United States (US) and Iran have engaged in “very good and productive conversations” over the past two days regarding a possible resolution.
He also noted that he had instructed the Department of War to postpone any military strikes on Iranian energy infrastructure for a five-day period, depending on the outcome of ongoing discussions. This announcement triggered a partial reversal of safe-haven flows, leading to a modest pullback in the Japanese Yen (JPY) and allowing EUR/JPY to recover from earlier daily lows.
Despite this rebound, markets remain cautious as the geopolitical situation is still fluid. Any deterioration in negotiations could quickly revive demand for defensive assets such as the Japanese Yen.
On the domestic front, Japanese authorities continue to signal vigilance. Japan’s top foreign exchange official, Atsushi Mimura, reiterated that the government stands ready to act against excessive volatility in the currency market. At the same time, the Bank of Japan (BoJ) maintains a relatively hawkish stance, with Governor Kazuo Ueda indicating that further rate hikes remain possible if economic conditions evolve in line with expectations.
On the European side, the Euro (EUR) remains influenced by mixed factors. Rising energy prices in the Eurozone are supporting inflation expectations, reinforcing the European Central Bank’s (ECB) hawkish bias. The ECB recently highlighted that geopolitical tensions have made the outlook “significantly more uncertain”, pointing to upside risks for inflation and downside risks for growth.
Investors now look ahead to a speech from ECB Chief Economist Philip Lane later on Monday, as well as Japan’s Consumer Price Index (CPI) release on Tuesday, which could shape monetary policy expectations and drive further moves in EUR/JPY.
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 Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.15% | -0.01% | -0.25% | 0.03% | 0.44% | 0.33% | 0.23% | |
| EUR | -0.15% | -0.16% | -0.39% | -0.12% | 0.39% | 0.18% | 0.09% | |
| GBP | 0.00% | 0.16% | -0.23% | 0.04% | 0.56% | 0.33% | 0.24% | |
| JPY | 0.25% | 0.39% | 0.23% | 0.31% | 0.71% | 0.51% | 0.51% | |
| CAD | -0.03% | 0.12% | -0.04% | -0.31% | 0.37% | 0.16% | 0.17% | |
| AUD | -0.44% | -0.39% | -0.56% | -0.71% | -0.37% | -0.23% | -0.19% | |
| NZD | -0.33% | -0.18% | -0.33% | -0.51% | -0.16% | 0.23% | -0.05% | |
| CHF | -0.23% | -0.09% | -0.24% | -0.51% | -0.17% | 0.19% | 0.05% |
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).
Author
Ghiles Guezout
FXStreet
Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.
