The post EUR/JPY slips below 163.00 as trade-related uncertainties benefit the safe-haven JPY appeared on BitcoinEthereumNews.com.

EUR/JPY attracts some sellers on Monday amid reviving demand for the safe-haven JPY. Subdued USD demand offers support to the Euro, which could limit losses for the cross. The divergent BoJ-ECB policy expectations warrant some caution for bullish traders. The EUR/JPY cross kicks off the new week on a weaker note and moves away from over a three-week top, around the 163.75 area touched on Friday. The downward trajectory drags spot prices back below the 163.00 mark during the Asian session, though it lacks bearish conviction. Mixed signals from the US and China temper hopes for an immediate de-escalation of trade tensions between the world’s two largest economies. In fact, US Treasury Secretary Scott Bessent said on Sunday that he did not know if US President Donald Trump had talked to Chinese President Xi Jinping. Moreover, China has repeatedly denied any ongoing tariff talks with the US. This, in turn, benefits the Japanese Yen’s (JPY) relative safe-haven status and exerts some downward pressure on the EUR/JPY cross. Investors, however, remain hopeful about the possibility of an eventual US-China trade deal. Moreover, market participants now seem to have pushed back their expectations for an immediate interest rate hike by the Bank of Japan (BoJ) due to economic risks from US tariffs. This, in turn, holds back the JPY bulls from placing aggressive bets. Furthermore, subdued US Dollar (USD) price action lends some support to the shared currency and could limit any meaningful downfall for the EUR/JPY cross. Meanwhile, signs of broadening inflation in Japan keep the door open for more BoJ rate hikes this year. In contrast, the European Central Bank (ECB) earlier this month warned that economic growth will take a big hit from US tariffs and bolstered the case for further policy easing in the months ahead. This, in…

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Filed under: News - @ April 28, 2025 5:19 am