EURJPY

EURJPY is the foreign exchange rate between the euro and the Japanese yen, representing the amount of yen needed to buy one euro. It is a cross currency pair and one of the most actively traded instruments outside the USD-based majors. In most trading platforms it is quoted as the number of yen per euro, with prices typically shown to two decimal places (for example, 158.25 JPY per EUR).

Trading occurs in the spot market and in futures markets, with high liquidity during European and Tokyo trading sessions. Spreads on EURJPY tend to be narrower when liquidity is strongest, and they can widen around major news releases or periods of volatility.

The pair is influenced by differences in monetary policy and economic data between the Eurozone and Japan. Key drivers include ECB interest rate decisions and messaging, BOJ policy actions or guidance, inflation and growth data, and shifts in global risk sentiment. Because the yen is often viewed as a safe-haven currency, EURJPY can strengthen when risk aversion rises and weaken when investors take on risk. Conversely, a stronger euro or a weaker yen due to policy surprises can push the pair in the opposite direction. Authorities have, on occasion, intervened in the yen, which can cause abrupt moves in EURJPY.

Traders use EURJPY for speculation, hedging euro exposure, or expressing views on relative macro conditions between Europe and Japan. The pair tends to be correlated with other EUR-based pairs and with USDJPY, reflecting broader cross-border capital flows and policy expectations.