EUR/JPY and GBP/JPY Near Record Levels

JPY is currently weak mainly because risk sentiment has improved after easing geopolitical tensions and a better energy security outlook. When markets feel more stable, traders usually move away from safe-haven currencies like the yen and shift toward higher-yielding currencies such as the EUR and GBP. This is one reason why EUR/JPY and GBP/JPY are trading near their highs.

At the same time, USD has weakened compared to EUR and GBP because markets are focusing on softer US rate expectations and upcoming inflation data risks. If traders expect fewer rate hikes or slower inflation pressure in the US, the dollar can lose strength even while the yen also remains weak.

Technically, EUR/JPY is trading near the 185.90 level. If a daily close above the 186.18 level would strengthen the bulls further, while all time high is 186.83. On the downside 184.66 holds as immediate support, and further support is near 183.50 (50-day SMA) to 182.00 zone. Buyers should be cautious about RSI levels, as they are near the overbought zone.

EUR/USD Daily Chart

Similarly, the GBP/JPY price is trending at the 213.50 area, near the all-time high zone of 214.30 - 214.90. On the downside 212.66 holds as immediate support, and further support is near 211.30 (50-day SMA) to 209.60 zone.

GBP/USD Daily Chart

In short, JPY weakness is mostly driven by stronger risk appetite and interest rate differentials, while USD weakness is linked more to interest rate expectations and economic data outlook, which explains why EUR and GBP are outperforming both today.