Euro - Japanese yen (EUR/JPY)

EUR/JPY shows how many Japanese yen are required to buy one euro. The pair reflects the exchange rate between the Eurozone and Japan and is widely traded in the global forex market.

Example: If EUR/JPY = 160.00, one euro equals 160 Japanese yen.

If the price rises to 162.00, the euro has strengthened against the yen.

If the price falls to 158.00, the Japanese yen has strengthened relative to the euro.

In every forex pair:

• EUR is the base currency
• JPY is the quote currency

Price movements are measured in pips.

• 1 pip = 0.01 for JPY pairs
• The second decimal place represents one pip

Examples:

• 160.00 → 160.01 = 1 pip
• 160.00 → 160.10 = 10 pips
• 160.00 → 161.00 = 100 pips

EUR/JPY is one of the most actively traded cross currency pairs and often shows strong trends driven by differences in monetary policy and global risk sentiment.

EUR/JPY trades in the global foreign exchange market which operates continuously from Monday to Friday across several major financial centers.

Major trading centers include:

• Sydney
• Tokyo
• London
• New York

Example of a typical trading day:

• Asian session – strong activity due to Japanese market participation
• London open – volatility increases as European traders enter the market
• London–New York overlap – highest liquidity and strongest price movements
• Late US session – activity gradually slows

EUR/JPY often reacts to economic announcements such as:

• European Central Bank interest rate decisions
• Bank of Japan policy announcements
• Eurozone inflation reports
• Japanese GDP and economic data

• Interest Rate Differences – Monetary policy decisions by the European Central Bank and the Bank of Japan strongly influence the pair.
• Economic Data – Indicators such as inflation, GDP growth and employment data affect expectations for monetary policy.
• Safe-Haven Demand – The Japanese yen often strengthens during periods of global economic uncertainty.
• Global Risk Sentiment – Risk-on environments may strengthen the euro while risk-off sentiment often benefits the yen.
• Trade and Political Developments – Political or economic developments in Europe or Asia may influence investor confidence.

Short-term forecasts often rely on technical indicators such as support and resistance levels, trendlines and momentum indicators.

If EUR/JPY trades near 160.00 support, traders may expect a rebound toward 162.00 if buying pressure appears.

Medium-term expectations depend largely on interest rate policy differences between the European Central Bank and the Bank of Japan.

Long-term forecasts consider global economic growth, capital flows and long-term monetary policy trends.

• Central Bank Policy – Interest rate decisions by the European Central Bank and the Bank of Japan remain major drivers.
• Global Economic Stability – Periods of financial stress may increase demand for safe-haven currencies such as the yen.
• Inflation Trends – Inflation levels influence expectations for future interest rate changes.
• Economic Growth Differences – Stronger economic growth in Europe or Japan may attract investment flows.
• Geopolitical Developments – Political tensions or economic disruptions can increase volatility.

• Trend Trading – Traders follow longer-term price movements driven by macroeconomic conditions.
• Breakout Trading – Breakouts above resistance or below support can signal strong momentum.
• News Trading – Central bank announcements and economic reports often trigger volatility.
• Support and Resistance Trading – Historical price levels help traders identify entry and exit points.

• High liquidity compared with many other cross currency pairs
• Strong trends driven by interest rate differences
• Volatility creating potential trading opportunities

• Volatility during central bank announcements
• Sudden changes in global risk sentiment
• Unexpected macroeconomic or geopolitical developments

Why is EUR/JPY popular among traders?

The pair combines a major European currency with the Japanese yen, creating strong trends driven by global macroeconomic factors.

What is a pip in EUR/JPY?

A pip represents the second decimal place in the exchange rate. For example a move from 160.00 to 160.01 equals one pip.

When is EUR/JPY most active?

The pair is typically most active during the London session and the London–New York trading overlap.

What news affects EUR/JPY the most?

European Central Bank decisions, Bank of Japan policy announcements and major economic reports.