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Euro stabilizes against yen as services PMIs beat expectations

EUR/JPY is near 181.9 after a four-session rebound from earlier yen-selling pressure tied to Japanese intervention, with traders now focused on upcoming eurozone retail sales.

Reported · Written up by our desk · Major Pairs

EUR/JPY was broadly steady around 181.94, up about 0.01% on Wednesday, as the cross pauses following a four-session recovery. The move comes after buyers recaptured higher lows after last week’s Japanese intervention and the Bank of Japan’s hawkish hold.

The euro gained support from stronger eurozone services data, with Spain’s HCOB Services PMI rising to 58.3 in July versus 55.3 in the preliminary estimate, and Germany’s Services PMI revised higher to 49.8 from 49.6. The eurozone composite PMI also edged up to 52 from 51.9, signaling a gradual private-sector recovery led by the periphery.

On the yen side, investors reviewed the Bank of Japan Minutes from its June meeting, which were released overnight. While those minutes predate the suspected intervention and last week’s 8–1 decision to hold rates at 1%, the discussion still drew attention to signals of a hawkish shift, including debate over price risks versus higher borrowing costs.

Attention now turns to eurozone retail sales, where expectations call for a 0.1% month-on-month increase in June, down from 0.2%, and a slowdown in the annual pace to 1% from 1.6%. FXStreet notes that a weaker print could conflict with the upbeat services surveys and limit the euro’s upside, while a stronger result could support further gains for the pair.

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