EUR/JPY jumps above 182.00 as Japanese Yen underperforms, ECB-BoJ policy eyed
- EUR/JPY snaps two-day losing streak and rises to near 182.15 amid weakness in the Japanese Yen.
- This week, the ECB is expected to leave interest rates unchanged, while the BoJ seems to raise them by 25 bps.
- The German IFO Business Climate unexpectedly dropped to 87.6 in December from 88.0 prior.
The EUR/JPY pair is up 0.25% to near 182.15 during the European trading session on Wednesday. The pair trades higher as the Japanese Yen (JPY) underperforms its major pairs, despite traders remaining confident that the Bank of Japan (BoJ) will raise interest rates in its monetary policy meeting on Friday.
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.26% | 0.68% | 0.48% | 0.23% | 0.18% | 0.18% | 0.12% | |
| EUR | -0.26% | 0.40% | 0.20% | -0.04% | -0.09% | -0.09% | -0.14% | |
| GBP | -0.68% | -0.40% | -0.19% | -0.45% | -0.49% | -0.49% | -0.55% | |
| JPY | -0.48% | -0.20% | 0.19% | -0.24% | -0.29% | -0.30% | -0.35% | |
| CAD | -0.23% | 0.04% | 0.45% | 0.24% | -0.05% | -0.06% | -0.11% | |
| AUD | -0.18% | 0.09% | 0.49% | 0.29% | 0.05% | -0.00% | -0.06% | |
| NZD | -0.18% | 0.09% | 0.49% | 0.30% | 0.06% | 0.00% | -0.06% | |
| CHF | -0.12% | 0.14% | 0.55% | 0.35% | 0.11% | 0.06% | 0.06% |
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 Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
The BoJ is expected to hike borrowing rates by 25 basis points (bps) to 0.75% as comments from Bank of Japan (BoJ) Governor Kazuo Ueda, came last week, signaled that the central bank is “closer to attaining its inflation target”, adding that the odds of “central bank's baseline economic and price outlook materializing had been gradually increasing”.
Given firm market expectations that the BoJ will tighten its monetary conditions, investors will look for comments about the timeframe for the next interest rate hike.
While the Euro (EUR) trades higher against the JPY, it is underperforming its other peers ahead of the European Central Bank’s (ECB) monetary policy decision on Thursday. The ECB is widely anticipated to keep the Deposit Facility Rate steady at 2% as a majority of officials have stated lately that there is no need for monetary policy adjustment as inflation is close to the central bank’s target of 2%. Investors will pay close attention to cues regarding how long the ECB will hold interest rates at their current levels.
On the economic front, the German business morale has surprisingly dropped in December. Earlier in the day, the German IFO Institute's Business Climate Index came in lower at 87.6 from 88.0 in November, while it was expected to improve to 88.2.
Economic Indicator
ECB Rate On Deposit Facility
One of the European Central Bank's three key interest rates, the rate on the deposit facility, is the rate at which banks earn interest when they deposit funds with the ECB. It is announced by the European Central Bank at each of its eight scheduled annual meetings.
Next release: Thu Dec 18, 2025 13:15
Frequency: Irregular
Consensus: 2%
Previous: 2%
Source: European Central Bank
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