EUR/JPY drops 0.3% as Japanese authorities signal potential currency market action to support the yen.
The Japanese yen strengthened sharply against the euro in European trading, with EUR/JPY falling 0.3% following comments from a senior Japanese official warning of possible intervention. The move reflects growing market sensitivity to verbal cues from Tokyo amid prolonged yen weakness.
Prior to the warning, the yen had hovered near multi-decade lows against major currencies, driven by the Bank of Japan’s ultra-loose monetary policy and widening yield differentials with other central banks. The latest decline in EUR/JPY marks a reversal from earlier sessions where the pair traded near 162.
Markets are now pricing in a higher probability of direct currency intervention, though no immediate action has been confirmed.