Bearish
Citi forecasts EUR/JPY below ¥175 in early 2027 despite short-term rebound risk
Citi analysts project that EUR/JPY will decline below ¥175 per euro in the first half of 2027, citing rising Japanese real interest rates due to a slowdown in Japanese equity gains. They anticipate a near-term recovery to around ¥183 per euro, with a base case of ¥181 in December. The outlook suggests a correction toward levels dictated by the absolute interest rate spread between the euro area and Japan.
Key points
- Citi projects EUR/JPY below ¥175 in early 2027 due to rising Japanese real interest rates.
- A near-term recovery to around ¥183 per euro is anticipated before the decline.
- The base case for December is EUR/JPY at approximately ¥181 per euro.
- The outlook depends on the absolute interest rate spread between the euro area and Japan.
Sources
AI-generated from public news sources. Not financial advice.
