⚡ Euro holds gains against Japanese Yen as Germany’s Trade Surplus widens in May

The euro is extending gains against the Japanese yen for a second consecutive day, trading near 185.70 in early European session Thursday. The cross-currency pair’s upward momentum follows Germany’s release of stronger-than-anticipated seasonally-adjusted trade balance figures for May, signaling robust export performance from Europe’s largest economy.

The widening German trade surplus has provided fundamental support for the euro, reinforcing positive sentiment around eurozone economic resilience. Traders are responding to the data as a confirmation of Germany’s continued export strength despite global economic headwinds. The yen remains under pressure as the divergence between European and Japanese economic indicators continues to influence currency markets.

Market participants should monitor whether EUR/JPY can sustain levels above 185.70, as technical resistance at current levels may trigger profit-taking. The pair’s trajectory will likely depend on additional European economic data releases and any policy signals from the European Central Bank or Bank of Japan.

FXnCO Insight

Traders should watch for EUR/JPY consolidation above 185.70 as a potential signal to position for further upside targeting 186.50, while stops below 185.00 protect against reversal risk.

Source: FXStreet