EUR/JPY Pushes Towards 179 as Oil Prices Fuel Euro Strength

The EUR/JPY exchange rate has been on an upward trend, reaching near 179.00 in European hours on Tuesday as global oil prices continued to rise.

This has put pressure on the yen due to Japan's energy-dependent economy, where over 90% of its energy needs are imported.

The Bank of Japan policy remains a source of support for the yen, with markets anticipating tighter policy alongside the unwinding of carry trades and repatriation flows from domestic investors.

In contrast, the euro has been bolstered by hawkish European Central Bank pricing, which suggests a 94% probability of another quarter-point rate hike in December.