EURJPY January 2026 fundamental analysisEuro/Japanese YenFX:EURJPYOneirotradeEUR/JPY Current Level: 183.783 | 1-Month Change: +3.31% | Trend: Uptrend Fundamental Analysis: EUR/JPY demonstrates strength driven by yen weakness rather than euro strength. The BoJ raised rates to 0.75% in December but real rates remain deeply negative (around -2% after inflation adjustment). The ECB holds at 2.00% with potential for future hikes being discussed in markets, but 2026 is expected to see an on-hold stance. The 125-basis-point differential favors EUR, but the real driver is yen weakness as investors rotate out of JPY carry trades on improving risk sentiment. The yen is structurally undervalued on interest rate parity metrics, and the BoJ's gradual tightening pace limits yen strength. Japan's inflation remains elevated (2.9%) while eurozone inflation is at target, limiting the BoJ's aggressive tightening. Safe-haven flows supporting the franc have not materially supported the yen, reflecting market skepticism about BoJ follow-through on hikes. Recent Price Action: Uptrend with +3.31% monthly gain reflects steady yen weakness. The pair has established a clear uptrend with positive momentum. Verdict: BUY – Yen structural weakness, interest rate differential advantages, positive momentum, and risk-on sentiment all support EUR/JPY appreciation through January.