EUR/JPY is trading near its lows and awaiting a pressure test as yen intervention risk rises. Liquidity is reportedly declining due to developments in European markets and the closure of Japanese markets.
EUR/JPY held around 180.25 in Monday trading, with trading remaining range-bound at elevated levels following the rebound last week.
The closure of Japanese markets during the three-day holiday period could reduce market liquidity and affect supply and demand conditions across Japan, the US and Europe.
Rising yen volatility is increasing intervention risk, while the market is focused on whether and how a pressure test will be conducted.