EUR/JPY is trading near 183.50 on Tuesday at the time of writing, down 0.15% on the day, on thin trading volumes as markets head towards the year-end holidays. The pair reflects a modest recovery in the Japanese Yen (JPY), supported by increasingly hawkish signals from the Bank of Japan (BoJ).
The Japanese yen finds support after the Bank of Japan’s summary of views from its December monetary policy meeting. The document shows that many Governing Council members believe that monetary policy should remain on a tightening path in 2026. One member noted that there is still a significant distance to reach neutral interest rate levels, favoring another increase in interest rates spaced out by a few months. Other policymakers also said additional rises were needed to help support the Japanese currency.
At that meeting, the Bank of Japan raised interest rates by 25 basis points to 0.75% from 0.50%, its highest level in 30 years. Last week, Bank of Japan Governor Kazuo Ueda already stressed the need to continue monetary policy normalization, citing tighter labor market conditions and changes in wage and price setting behavior by companies, which he sees as signs that inflation has returned sustainably towards the 2% target.
Many officials also argue that the Japanese yen’s continued weakness and rising long-term yields are partly due to interest rates remaining too low relative to inflation. This assessment reinforces expectations for further monetary adjustments. In addition, Japanese Finance Minister Satsuki Katayama recently said that Japan has full flexibility to respond to excessive moves in the Japanese yen, leaving the door open for verbal intervention that may help support the currency.
On the EUR side, downward pressure remains limited. Markets interpret recent signals as indicating that the European Central Bank’s interest rate cutting cycle is coming to an end. The central bank kept interest rates unchanged in December and indicated they were likely to remain steady for some time. ECB President Christine Lagarde stressed that the high level of uncertainty prevents the central bank from providing clear guidance forward, preferring a data-driven, meeting-by-meeting approach. Financial markets are currently pricing in a less than 10% chance of a 25 basis point rate cut in February.
Against this backdrop, the modest decline in the EUR/JPY pair mainly reflects moderate strength of the Japanese yen following hawkish signals from the Bank of Japan, while the dovish stance of the European Central Bank helps limit the pair’s downside.
Euro price today
The table below shows the percentage change of the Euro (EUR) against the major currencies listed today. The euro was the strongest against the New Zealand dollar.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | 0.06% | 0.02% | -0.11% | 0.04% | -0.10% | 0.13% | -0.04% | |
| euro | -0.06% | -0.04% | -0.18% | -0.03% | -0.16% | 0.04% | -0.10% | |
| GBP | -0.02% | 0.04% | -0.11% | 0.00% | -0.13% | 0.12% | -0.08% | |
| JPY | 0.11% | 0.18% | 0.11% | 0.15% | 0.00% | 0.19% | 0.09% | |
| Canadian | -0.04% | 0.03% | -0.01% | -0.15% | -0.13% | 0.07% | -0.08% | |
| Australian dollar | 0.10% | 0.16% | 0.13% | -0.00% | 0.13% | 0.20% | 0.03% | |
| New Zealand dollar | -0.13% | -0.04% | -0.12% | -0.19% | -0.07% | -0.20% | -0.18% | |
| Swiss franc | 0.04% | 0.10% | 0.08% | -0.09% | 0.08% | -0.03% | 0.18% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select EUR from the left column and move along the horizontal line to USD, the percentage change displayed in the box will represent EUR (base)/USD (quote).
