EUR/JPY Recovery Fails to Stick Amid Risk Aversion

The EUR/JPY currency pair experienced a mixed day on Friday, recovering from its session lows but remaining under pressure. The pair's recovery was largely attributed to short-covering and an improvement in risk appetite during the European morning.

However, the rebound lacked conviction, with the pair remaining below its opening level as investors remained cautious ahead of key data releases.

The divergence between the European Central Bank's (ECB) and the Bank of Japan's (BoJ) monetary policies continues to weigh on the cross. The ECB has signaled a pause in its tightening cycle, while the BoJ remains an outlier with its ultra-loose monetary stance.