Euro Recovery Against Yen Stalls Amid BoJ Hawkishness

The Euro (EUR) made moderate gains against the Japanese Yen (JPY) on Friday, but its rebound from one-month lows stalled below 182.00.

The EUR/JPY pair trimmed some losses after a sharp 500-pip sell-off in the previous two days, but analysts pointed to the Bank of Japan's hawkish comments as the reason for the Yen's impressive recovery earlier this week.

Currency strategists at OCBC cautioned against extrapolating the latest pace of JPY gains, but noted that a combination of firmer BoJ expectations, softer UST yields, and potential shifts in domestic institutional flows has turned the near-term backdrop more supportive for JPY.