EUR/JPY returns above 185.00, Yen weakens ahead of Japan’s elections
The post EUR/JPY returns above 185.00, Yen weakens ahead of Japan’s elections appeared on BitcoinEthereumNews.com.
The Euro (EUR) has resumed its immediate bullish trend against the Japanese Yen (JPY) on Friday. The pair is trading at 185.25 at the time of writing, up from session lows at 184.40, with the JPY losing ground against its main peers ahead of this weekend’s snap elections. The Yen has been one of the weakest-performing currencies among the G8 majors for the second consecutive week, as investors remain wary that the elections might grant Prime Minister Sanae Takaichi stronger support to continue her expansive fiscal policies, with risks of a debt crisis looming. Takaichi is likely to obtain a lanslide victory Takaichi is enjoying increasing popularity, and the latest polls are clearly favourable. A local newspaper reported that the ruling Liberal Democratic Party (LDP) could secure as many as 300 of the 450 seats in the Japanese Lower House, a result that would allow Takaichi to rule without coalition restrictions, a scenario that spooks markets. In Europe, data from Germany has been far from supportive on Friday, as December’s Industrial Production contracted well beyond expectations. The Euro, however, maintains a mild bullish tone supported by the hawkishly leaning message by the European Central Bank (ECB) on Thursday. The ECB left interest rates on hold at 2% but also maintained its inflation projections steady and unchanged, downplaying concerns about the deflationary effects of a strong Euro. Christine Lagarde reiterated that monetary policy is in a “good place” and hinted at steady interest rates for the foreseeable future. Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. One…
Filed under: News - @ February 6, 2026 11:26 am