EUR/JPY Soars Past Key Averages Amid Yen Carry Trade

The Euro versus Yen (EUR/JPY) exchange rate is currently trading at ¥185.7, showing a modest gain for the session.

This marks a further advance above its key moving averages and is nearing its day's high in a low volatility environment.

Despite recent U.S.-Japan intervention talks failing to achieve a sustained effect, the yen has been bolstered by Treasury comments addressing bond market volatility.

The Treasury's move provided relief for the Japanese yen, allowing it to regain ground against the Euro and move away from the closely watched 160 level.

As strong U.S. yields continue to influence the yen carry trade, there is an increased likelihood of further policy action.