{"id":31349,"date":"2026-03-23T15:58:23","date_gmt":"2026-03-23T15:58:23","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/31349\/"},"modified":"2026-03-23T15:58:23","modified_gmt":"2026-03-23T15:58:23","slug":"amid-easing-middle-east-tensions-signalled-by-trump-eur-jpy-recovers-yet-stays-0-30-lower-near-183-65","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/31349\/","title":{"rendered":"Amid easing Middle East tensions signalled by Trump, EUR\/JPY recovers yet stays 0.30% lower near 183.65"},"content":{"rendered":"EUR\/JPY rebounded from intraday lows but was still down 0.30% on Monday, trading near 183.65. The Japanese Yen weakened after signs of easing conflict in the Middle East.\n\nEarlier, rising tensions lifted demand for safe-haven assets and weighed on the pair. Sentiment improved after comments from US President Donald Trump, reported by Reuters, about talks with Iran.\n\n

Shift In Market Sentiment<\/h3>\nTrump said the US and Iran had held \u201cvery good and productive conversations\u201d over the past two days. He also said he told the Department of War to delay any strikes on Iranian energy infrastructure for five days, depending on talks.\n\nThe change in tone reduced safe-haven buying and led to a pullback in the Yen, helping EUR\/JPY recover. Markets remained cautious because negotiations could still worsen and lift defensive demand again.\n\nIn Japan, officials said they are watching for excessive currency swings. Bank of Japan Governor Kazuo Ueda said further rate rises are possible if the economy matches expectations.\n\nIn the Eurozone, higher energy prices supported inflation expectations and the European Central Bank\u2019s hawkish lean. The ECB said geopolitical tensions made the outlook more uncertain, with risks of higher inflation and weaker growth.\n\n

Key Data And Policy Watch<\/h3>\nAttention then turns to an ECB speech by Chief Economist Philip Lane on Monday and Japan\u2019s CPI on Tuesday. Both could affect policy expectations and EUR\/JPY moves.\n\nLooking back at the sharp reversal in EUR\/JPY during the US-Iran tensions in 2025, we are reminded of how sensitive this pair is to geopolitical headlines. Today, with the pair trading near 191.50 amid renewed tensions in the South China Sea, that lesson is highly relevant. Any sudden signs of de-escalation could again trigger a rapid sell-off in the safe-haven Yen, mirroring the past event.\n\nThis environment suggests that owning options to trade volatility may be prudent. Given how quickly sentiment shifted in 2025, buying a straddle could position a trader to profit from a large move in either direction without needing to predict the outcome of diplomatic talks. Implied volatility for EUR\/JPY has already ticked up 1.2% this past week, showing the market is pricing in a higher chance of a significant swing.\n\nOn the policy front, we see echoes of the past as well. While the Bank of Japan did follow through with a modest rate hike to 0.25% late in 2025, officials continue to warn against excessive Yen weakness, creating a potential floor for the currency. This suggests that selling downside puts below key technical levels, like the 190.00 mark, could be a viable strategy for collecting premium.\n\nMeanwhile, the European Central Bank remains focused on inflation, a concern they also highlighted back in 2025. With last week’s Eurozone inflation data coming in stubbornly high at 2.8%, the ECB is unlikely to signal any policy easing soon. This fundamental support for the Euro makes buying call options on EUR\/JPY attractive, especially on any dips caused by temporary risk-off sentiment.\n\nThe primary takeaway from the 2025 event is the need for risk management against sudden reversals. For traders holding a core long position in EUR\/JPY, purchasing protective puts is a crucial strategy to hedge against an unexpected peace dividend that could strengthen the Yen. This protects profits from the kind of rapid unwind we have seen before.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Start trading now – Click here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n","protected":false},"excerpt":{"rendered":"

EUR\/JPY rebounds near 183.65 as easing Middle East tensions weaken yen; ECB and Japan CPI awaited.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-31349","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/31349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=31349"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/31349\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=31349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=31349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=31349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}