The EUR/JPY pair claws back a majority of its initial losses and rises to near 172.60 during the late Asian session on Monday ...

The Japanese yen jumped early Monday, catching traders off guard just hours after Ishiba’s ruling party suffered a historic blow in the upper-house election.

A breakthrough in trade talks with the U.S. might win Ishiba a reprieve, but so far there's been scant sign of progress in negotiating away the threat of higher tariffs on Japan's exports to the U.S.

The "BoJ trade" emerged at the end of 2022, with the expectation that Japan's persistent negative real rates and a weaker yen would spark inflation and allow the BoJ to lift nominal policy rates.