EUR/JPY Momentum Ahead of ZEW Release

The Euro has been marching steadily upward against the Japanese Yen during Asian trading, breaking through the 178‑level that has been a key psychological barrier for weeks. The cross rose to 178.35 on Tuesday, a swing that reflects improving risk sentiment as investors absorb positive cues from the global markets.

Key Drivers

  • Risk‑On Environment – A recent breakthrough in the U.S. political stalemate, where the Senate has cleared a pivotal step toward ending the longest federal shutdown, has lifted equities and lifted the broader risk appetite. The optimism from the U.S. has rippled across currency markets, strengthening the Euro against the Yen.
  • European Sentiment Outlook – The impending release of the German and Eurozone ZEW Economic Sentiment Index is a major catalyst. A robust reading would reinforce the current uptrend for the Euro, whereas a weak release could temper the gains. Market participants are closely watching this data for confirmation.
  • Technical Breakout – 178.35 sits above the 52‑week high of 178.798, indicating that the Euro has surpassed its most recent all‑time high from late October. The 52‑week low of 154.813 suggests a broadening range, and the current level represents a new base for potential further upside.

Fundamental Snapshot

  • Current Close (2025‑11‑09): 177.563
  • 52‑Week High: 178.798 (2025‑10‑29)
  • 52‑Week Low: 154.813 (2025‑02‑27)

The recent rally is a confluence of improved risk sentiment, a potentially favorable ZEW release, and a breakout past a critical psychological level. Should the sentiment index confirm a resilient outlook for Germany and the Eurozone, the Euro/JPY pair could see additional upward movement, potentially approaching or surpassing the 179‑mark. Conversely, any signs of a softening in European sentiment or a reversal in U.S. political momentum may prompt a corrective pullback.

Investors should monitor the ZEW data release for validation and keep an eye on any overnight developments in U.S. policy that could alter the risk‑on trajectory. The EUR/JPY pair remains poised for further gains if the current catalysts hold, but traders should be prepared for volatility around the key 178‑level as the market digests the upcoming European economic outlook.