Euro Rebounds vs Yen After Suspected BOJ Intervention Spikes Volatility

The euro rebounded against the yen on Friday, with EUR/JPY trading near 184.00, as markets digested the previous day's extraordinary volatility. The cross rate collapsed from around 187.00 to near 182.00 in minutes on Thursday, marking a roughly 500-pip swing following what traders suspect was another round of intervention by Japanese authorities to prop up the yen.

Alongside the intervention jitters, the yen had gained after the Bank of Japan kept its ultra-loose policy settings unchanged, disappointing some who had speculated about a near-term pivot. Meanwhile, the euro found footing from upside surprises in Eurozone inflation data.

The sharp recovery to the 184.00 area suggests the initial intervention shock was absorbed, but the pair remains well below the week's highs as traders assess the risk of further official yen buying.