Japanese Yen surges on suspected intervention, EUR/JPY tumbles 400 pips in minutes

EUR/JPY plunged 2.54% to around 182.60 after a sudden, intervention-like surge in the Japanese Yen triggered broad-based selling in yen crosses. The pair fell more than 400 pips in minutes, with USD/JPY also breaking below 161.00, reinforcing speculation that Japanese authorities stepped in to slow yen weakness. The move comes ahead of the Bank of Japan’s policy decision on Friday, where rates are expected to stay at 1%, but investors will scrutinize growth projections and Governor Ueda’s remarks for clues on the timing of the next hike. A more hawkish BoJ could extend the yen rebound and keep pressure on EUR/JPY and other JPY crosses. Euro data was mildly supportive, with Germany and the eurozone reporting better-than-expected Q2 GDP, but it was not enough to offset the yen-driven FX volatility.