- 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).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
