Geopolitical tensions lift the Japanese Yen, pushing EUR/JPY lower despite an overall bullish outlook for the cross.
The EUR/JPY cross slipped to 185.10 in early European trading Thursday, paring recent gains as demand for the safe-haven Japanese Yen rose. Escalating US-Iran tensions fueled risk aversion, boosting the Yen and capping the pair’s momentum.
Prior to the pullback, EUR/JPY had advanced steadily, supported by diverging monetary policy expectations between the European Central Bank and the Bank of Japan. The cross remains above key support levels, with analysts maintaining a bullish bias.
No immediate market reaction data was provided, though the shift underscores sensitivity to geopolitical developments.