News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Euro Strengthens Near Record Levels Amid BoJ Caution, ECB Rate Decision Looms
Traders' Opinions
Summary:
The euro remains firm near record highs against the Japanese yen after the Bank of Japan maintained its ultra-dovish stance, reinforcing yen weakness.
Buy
TradingEURJPY
EXP
178.490
Entry Price
182.000
TP
177.050
SL
177.585 +0.008 +0.00%
0
Point
Flat
177.050
SL
CLOSING
178.490
Entry Price
182.000
TP
The euro is holding near record highs against the Japanese yen on Thursday, as the Japanese currency continues to languish under the weight of the Bank of Japan’s dovish policy stance. The EUR/JPY pair traded around 178.30 in European afternoon hours, up roughly 0.6% on the day, as investors digested the BoJ’s latest monetary policy decision and looked ahead to the European Central Bank (ECB) announcement later in the session.
The Bank of Japan left its short-term policy rate unchanged at 0.50%, a move that was widely expected by markets. The decision, backed by a 7–2 majority, saw board members Naoki Tamura and Hajime Takata dissent in favor of a 25-basis point hike to 0.75%, highlighting a growing but still limited divide within the board over the pace of policy normalization.
Despite persistent inflation pressures and rising wages in Japan, the central bank maintained a cautious approach. BoJ Governor Kazuo Ueda reiterated that monetary conditions would remain accommodative “as long as necessary,” noting that the economy was still facing uncertainty from both global trade and geopolitical risks. “We will continue to raise the policy rate if the economy and prices move in line with forecasts,” Ueda said, while emphasizing that the bank must remain vigilant amid fragile global demand and policy uncertainty in major economies.
The tone from the BoJ reinforced the view that Japan’s normalization path will be slow and incremental — a stance that continues to undermine the yen’s appeal. The currency remains one of the weakest among major peers this year, pressured by a wide yield gap with the U.S. and Europe. The spread between Japanese and European bond yields remains particularly stark, fueling carry trade demand that favors the euro and other higher-yielding currencies.
In contrast, the euro found additional support from stronger-than-expected macroeconomic data earlier in the day. Preliminary figures showed that the Eurozone’s GDP expanded by 0.2% quarter-on-quarter in Q3, outpacing expectations for 0.1%. On an annual basis, growth reached 1.3% year-on-year, slightly above forecasts and suggesting that the bloc’s economy continues to show resilience despite high borrowing costs and sluggish manufacturing activity.
The data underpins the ECB’s case for maintaining its current cautious stance rather than pivoting toward renewed tightening. Inflation in the euro area has eased in recent months but remains above the central bank’s target, while the economic outlook remains fragile amid weak business sentiment and subdued consumer spending.
Attention now turns to the ECB’s monetary policy decision, scheduled for 13:15 GMT. Markets expect all three key policy rates to remain unchanged — the Deposit Facility Rate at 2.00%, the Main Refinancing Operations Rate at 2.15%, and the Marginal Lending Facility Rate at 2.40%. Traders will focus on Christine Lagarde’s post-meeting remarks for any hints on whether the ECB may adjust its stance before year-end or maintain its “higher for longer” rate posture.
Lagarde’s tone could be pivotal for short-term moves in the euro. A hawkish signal emphasizing inflation risks could reinforce euro strength, while any dovish hints about policy easing in early 2026 could cap gains. For now, traders appear comfortable betting on further euro resilience against the yen, given the clear divergence between the ECB’s relatively steady approach and the BoJ’s entrenched dovishness.
Technical Analysis
From a technical perspective, EUR/JPY maintains a bullish outlook after breaking above the 178.80 resistance level earlier in the session — a move that signals continued upward momentum. A sustained move above this threshold could open the way for further gains toward 180.00 and potentially 182.00, marking fresh multi-year highs.
However, a pullback below 177.05 would invalidate the near-term bullish bias, likely triggering a corrective move toward 176.30 and 175.65. For today, analysts expect the trading range between 177.10 and 178.65, with momentum indicators still favoring the upside as long as the pair holds above 177.00.
TRADE RECOMMENDATION
BUY EURJPY
ENTRY PRICE: 178.50
STOP LOSS: 177.05
TAKE PROFIT: 182.00
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2025 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.