The currency pair climbs 0.44% as markets price in further ECB tightening and weigh Japan’s fiscal outlook.
EUR/JPY traded near 181.70 on Monday, gaining 0.44% as the euro strengthened on expectations of further European Central Bank rate hikes. The yen remained under pressure amid concerns over Japan’s fiscal sustainability and monetary policy divergence.
Prior to the move, the pair had stabilized around 180.50 after a volatile week, with traders assessing ECB commentary and weak Japanese economic data. The yen’s decline reflects persistent concerns over Japan’s debt levels and the Bank of Japan’s ultra-loose policy stance.
Markets now await further signals from ECB officials and Japanese fiscal policy updates to gauge the pair’s next direction.