Analysts forecast further yen weakness toward 165 if the uptrend persists, lifting EUR/JPY toward 187-188.
The USD/JPY pair surged past 162.85, reaching its highest level since 1986, with potential to extend gains toward 164.50-165 if momentum holds. The move follows sustained dollar strength and yen depreciation, driving EUR/JPY toward 187-188 on a break above 186.
EUR/USD remains under pressure, with support seen near 1.1350. Markets are monitoring the Bank of Japan for potential intervention to curb the yen’s decline, though no immediate action has been signaled.
Traders are cautious amid expectations of continued volatility, particularly if the yen weakens further without central bank pushback.