Exchange Rate Calculator

The exchange rate between the Japanese Yen (JPY) and the Euro (EUR) has experienced notable fluctuations over the past few months. Understanding these movements requires an examination of recent trends, technical indicators, and the underlying economic factors influencing both currencies.

Recent Trends in JPY/EUR Exchange Rate

Over the past six months, the JPY/EUR exchange rate has exhibited a downward trend. On February 27, 2025, the rate peaked at 0.0064129 EUR per JPY. By June 27, 2025, it had declined to 0.0058983 EUR per JPY, marking a decrease of approximately 8%. The average exchange rate during this period was 0.0061701 EUR per JPY. (exchangerates.org.uk)

Technical Analysis

As of June 27, 2025, the JPY/EUR exchange rate was trading near its 8-day Exponential Moving Average (EMA) and below its 21-day EMA by 1.13%, its 50-day EMA by 2.29%, and its 100-day EMA by 3.21%. The downward slope of the 8-day EMA indicates bearish momentum. The Moving Average Convergence Divergence (MACD) line is below its signal line, further confirming negative momentum and a prevailing downtrend. (exchangerates.org.uk)

Economic Factors Influencing the Exchange Rate

Several economic factors have contributed to the recent depreciation of the Japanese Yen against the Euro:

• Interest Rate Differentials: The European Central Bank (ECB) has maintained relatively higher interest rates compared to the Bank of Japan (BoJ). Higher interest rates in the Eurozone attract investors seeking better returns, increasing demand for the Euro and contributing to the Yen's depreciation.

• Economic Performance: The Eurozone has exhibited stronger economic growth indicators, including higher GDP growth rates and lower unemployment, compared to Japan. This economic disparity enhances the Euro's attractiveness to investors.

• Monetary Policy: The BoJ's commitment to an ultra-loose monetary policy, including negative interest rates and yield curve control, contrasts with the ECB's more conservative approach. This divergence influences investor sentiment and capital flows, favoring the Euro over the Yen.

Forecasts and Future Outlook

Analysts project a gradual appreciation of the JPY/EUR exchange rate in the coming months. Forecasts suggest the rate could reach 0.0063 by September 2025 and 0.0064 by March 2026. These projections are based on expectations of narrowing interest rate differentials and potential shifts in monetary policies. (exchangerates.org.uk)

Conclusion

The JPY/EUR exchange rate has been on a downward trajectory over the past few months, influenced by interest rate differentials, economic performance disparities, and divergent monetary policies between Japan and the Eurozone. Technical indicators currently signal bearish momentum. However, forecasts indicate a potential appreciation of the Yen against the Euro in the near future, contingent upon changes in economic conditions and policy decisions.