The EUR/JPY exchange rate declined to around 184.45 during early European trading hours on Friday, driven by concerns over possible currency intervention by Japanese authorities, according to FX Street.
As fears of intervention grew, the Japanese Yen strengthened against the Euro, causing the EUR/JPY cross to lose momentum. FX Street reported that market participants are closely watching the situation for any signs of official action.
Given Japan’s long-standing sensitivity to sharp yen moves, especially in the FX market, investors remain cautious amid ongoing speculation of central bank involvement to stabilize the currency.