Euro Recovers Against Yen as Japan Faces Pressure Over Currency Weakness

The Euro has made a strong recovery against the Japanese Yen after testing its year-to-date low at 177.35.

This comes as the Japanese Yen faces pressure due to fears of joint intervention by the United States and Japan to support the currency against excessive volatility.

Analysts at MUFG note that recent media reports stated US President Trump voiced concern about yen weakness, reinforcing expectations that policymakers are under pressure to cap further upside for USD/JPY.

Japanese Finance Minister Satsuki Katayama has also expressed her agreement with United States Treasury Secretary Scott Bessent to beef up cooperation and has stated that undervalued Japanese Yen is problematic.