EUR/JPY Steady Near 180.25 Amid Intervention Fears and Thin Liquidity

The EUR/JPY currency pair held steady near 180.25 in early European trading hours on Monday, despite thin liquidity and intervention jitters due to Japan's three-day market holiday.

Market participants remain cautious about the possibility of Japanese authorities intervening in foreign exchange markets, as officials reportedly monitor FX conditions closely.

The Bank of Japan (BoJ) recently raised its policy rate by 25 basis points to 1.25%, aligning with market expectations. However, the lack of a clearly hawkish policy message has put pressure on the Japanese Yen.

Eurozone policymakers, led by European Central Bank President Christine Lagarde, emphasized flexibility in their monetary policy approach, stating that rate decisions will be taken 'meeting by meeting' and rate cuts are unlikely at present.