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    After four positive days, EUR/JPY remains around 177.32, influenced by BoJ policies and French politics.

    by VT Markets
    /
    Oct 9, 2025

    European Central Bank Policies

    Japan’s Labour Cash Earnings grew by 1.5% in August, down from 4.1% in July and below the expected 2.6%. In real terms, wages dropped by 1.4%, marking the eighth month of decline. This has lowered expectations for an interest rate hike by the Bank of Japan (BoJ). Sanae Takaichi has won the leadership of Japan’s ruling party and seems poised to become the next Prime Minister. Her pro-stimulus approach suggests the BoJ will continue its current policies. The EUR/JPY currency pair is stabilizing due to Japan’s expected dovish stance and France’s political stability. However, profit-taking is limiting its upward movement. The euro is performing well against major currencies, especially the New Zealand Dollar.

    Trading Strategies and Market Opportunities

    We recall a period when EUR/JPY was stable near a record high of 177, influenced by a dovish Bank of Japan and easing political worries in France. This situation created strong support for traders who were long on the pair. The main reason was clear: the Bank of Japan couldn’t raise rates, while Europe had a more stable outlook. The weak yen we anticipated has mostly come true over the past year. Japan’s Q3 2025 wage growth figures, at a modest 1.8%, confirm that the BoJ has little space to tighten its policies aggressively. The BoJ’s policy rate has only reached 0.1%, keeping the yen as a funding currency for carry trades. Create your live VT Markets account and start trading now.

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