- EUR/JPY rises as the Japanese Yen weakens due to Trump’s consideration of additional tariffs of 30% or 35% on Japan.
- The Japanese Yen also faces challenges due to the BoJ’s caution over interest rate hikes.
- ECB’s Lane said that the central bank must stand ready to counter any deviation in CPI.
EUR/JPY retraces its recent losses from the previous session, trading around 169.40 during the early European hours on Wednesday. The currency cross maintains its position near 169.86, the highest since July 2024, which was recorded on June 30, 2025.
The EUR/JPY cross gains ground due to the weaker Japanese Yen (JPY), driven by the recent comments from the US President Donald Trump. Trump hit the newswires on Tuesday, saying that he is considering adding additional 30% or 35% tariffs on Japan and not extending the self-imposed July 9 deadline on the currently-suspended reciprocal tariffs. Trump expressed his doubt on reaching a deal with Japan.
The JPY also face challenges due to the Bank of Japan’s (BoJ) cautious on unwinding its ultra-loose policy forced investors to delay their expectations for early interest rate hikes. The BoJ new board member Kazuyuki Masu highlighted on Tuesday that the central bank should not rush into raising interest rates given various economic risks.
Bank of Japan Governor Kazuo Ueda also highlighted that any future rate hikes will be data driven, including wage growth and expectations. Ueda highlighted the headline inflation has been above 2% for nearly three years, underlying inflation remains below target.
The upside of the EUR/JPY could be restrained as the Euro (EUR) struggles, driven by the preliminary Eurozone inflation, came in at 2% as expected, staying at the European Central Bank’s (ECB) target band. Traders will likely observe Eurozone Unemployment Rate scheduled to be release later on Wednesday.
European Central Bank (ECB) Chief Economist Philip Lane said on Tuesday that the central bank must be prepared to respond to any deviation in CPI. Philip added that the next five years are expected to be dynamic, with 10% tariffs factored into the ECB’s baseline scenario.
The European Union (EU) Commissioner Maros Sefcovic would travel to Washington to meet with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick in an effort to push the tariff talks forward, per Bloomberg.
Euro PRICE Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.22% | 0.22% | 0.37% | 0.01% | 0.15% | 0.17% | 0.26% | |
| EUR | -0.22% | -0.04% | 0.14% | -0.25% | -0.07% | 0.07% | 0.04% | |
| GBP | -0.22% | 0.04% | 0.20% | -0.22% | -0.06% | 0.08% | 0.06% | |
| JPY | -0.37% | -0.14% | -0.20% | -0.36% | -0.24% | -0.16% | -0.12% | |
| CAD | -0.01% | 0.25% | 0.22% | 0.36% | 0.16% | 0.27% | 0.27% | |
| AUD | -0.15% | 0.07% | 0.06% | 0.24% | -0.16% | 0.17% | 0.12% | |
| NZD | -0.17% | -0.07% | -0.08% | 0.16% | -0.27% | -0.17% | -0.02% | |
| CHF | -0.26% | -0.04% | -0.06% | 0.12% | -0.27% | -0.12% | 0.02% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
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