EUR/JPY holds steady above 178.00, remains close to record high touched on Thursday

أسواق الإمارات اليومOctober 31, 2025

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EUR/JPY bulls retain control as the BoJ rate hike uncertainty keeps the JPY bulls on the defensive.
Japan’s PM Takaichi is expected to pursue aggressive fiscal spending and resist policy tightening.
The ECB’s on-hold rate decision on Thursday underpins the Euro and further supports spot prices.

The EUR/JPY cross attracts some dip-buyers near the 177.85 area during the Asian session on Friday, and for now, it seems to have stalled its modest pullback from the all-time peak, touched the previous day. Spot prices currently trade around 178.15 region, nearly unchanged for the day, and remain on track to register strong monthly gains.

The Japanese Yen (JPY) did get a minor lift earlier today following the release of stronger consumer inflation figures from Tokyo, Japan’s capital city, which backed the case for the Bank of Japan (BoJ) to stick to its policy tightening path. The initial reaction, however, fades quickly as investors remain uncertain over the likely timing of the next BoJ rate hike amid speculations that Japan’s new Prime Minister Sanae Takaichi will pursue aggressive fiscal spending plans and resist policy tightening. This, in turn, keeps a lid on any meaningful upside for the JPY and offers some support to the EUR/JPY cross.

Meanwhile, the European Central Bank (ECB) kept interest rates unchanged at 2% for the third meeting in a row on Thursday. Moreover, the ECB repeated that policy was in a good place as the Eurozone economy continues to show resilience despite global trade uncertainty, and inflation remains close to the 2% medium-term target. This further contributes to limiting the downside for the EUR/JPY cross and backs the case for an extension of the recent well-established uptrend. Hence, any meaningful corrective pullback might still be seen as a buying opportunity and is more likely to remain limited.

Octalas AI