The EUR/JPY currency pair is trading lower on Friday despite the Euro posting strong gains against the US Dollar. The Japanese Yen surged abruptly at the start of the American trading session following a surprisingly weak US employment report that caught markets off guard. While EUR/JPY has recovered from its session lows, the pair remains in negative territory as traders react to the employment data.
The weakness in US jobs figures has triggered a flight to safe-haven assets, with the Yen benefiting from its traditional defensive appeal during periods of economic uncertainty. The Euro’s strength against the Dollar has not been sufficient to offset the Yen’s broad-based rally, leaving EUR/JPY under pressure despite mixed currency dynamics.
FXnCO Insight
Traders should monitor JPY crosses closely as weak US employment data may sustain safe-haven flows into the Japanese currency, potentially keeping EUR/JPY and other Yen pairs under downward pressure in the near term.
Source: FXStreet