The EUR/JPY pair declined sharply, hitting a multi-day low near the mid-162.00s, as the Japanese yen rallied on renewed safe-haven demand. Investors flocked to the yen amid growing concerns about global economic uncertainties, including persistent inflationary pressures and geopolitical risks, which have weakened risk appetite.
The yen’s surge was further supported by hawkish signals from the Bank of Japan, fueling speculation of potential adjustments to its ultra-loose monetary policy. Meanwhile, the euro struggled to hold ground, weighed down by mixed economic data from the Eurozone, including tepid growth figures that dampened investor confidence.
Analysts highlighted that EUR/JPY could face further declines if market sentiment remains risk-averse. The yen’s recent strength reflects broader market trends favoring safe-haven assets, while the euro’s outlook remains vulnerable to regional inflation concerns and slowing industrial activity.
Traders are closely monitoring upcoming data releases, including Japan’s core inflation numbers and Eurozone industrial output, which could shape the near-term trajectory of the pair. The EUR/JPY’s performance underscores shifting market dynamics, with the yen benefiting from a flight to safety and the euro struggling under economic pressures.
