Yen's Safe-Haven Appeal Returns as Euro Bears Eye a Break Below 175

Stock News10-26 16:50

Euro/yen bears are eyeing a break below the 175 level, with the yen's safe-haven appeal reawakening in tandem.

Analysis suggests that fiscal and social pressures in France are placing sustained strain on the euro, strengthening the case for bullish yen positioning. However, short-term uncertainty surrounding Federal Reserve policy and the US midterm elections is clouding this outlook.

The missing piece remains a hawkish shift from the Bank of Japan at its October 30 meeting. The euro/yen exchange rate is currently fluctuating around 176.

"The international backdrop may have turned convincingly bullish for the yen, but for this view to hold fully, the Bank of Japan will need to confirm a more hawkish stance before 2027," said FX strategist Audrey Childe-Freeman in a report. She added that defensive currency positions have regained favor following a recent string of risk-averse trading sessions.

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