• EUR/JPY weakens to near 183.65 in Monday’s early European session.
• Trump laid out plans for Venezuela as Maduro awaits court appearance. 
• ECB kept interest rates unchanged earlier this month and signaled that they are likely to remain unchanged in 2026.

The EUR/JPY cross loses ground to around 183.65 during the early European session on Monday. The Japanese Yen (JPY) strengthens against the Euro (EUR) on rising geopolitical tensions in Venezuela. The Eurozone Sentix Investor Confidence report will be released later on Monday. 

The US Army’s Delta Force attacked Venezuela and captured its President Nicolás Maduro, along with his wife, on Saturday. US President Donald Trump said early Monday that Washington might make a second military intervention if Venezuela’s interim president, Delcy Rodríguez, did not accommodate their demands. The US attack on Venezuela raises fears of geopolitical risks, boosting safe-haven currencies like the Japanese Yen (JPY) and acting as a headwind for the cross. 

However, the Bank of Japan’s (BoJ) cautious stance on further policy tightening and the lack of a clear timeline for future interest hikes might cap the upside for the JPY. Most economists expect the next rate hike to be delayed until the second half of 2026, possibly in October. 

The European Central Bank (ECB), however, kept rates unchanged at its December policy meeting, and its outlook suggested less urgency for further cuts. This, in turn, could provide some support to the EUR. ECB President Christine Lagarde noted that all options remain on the table and there was no discussion of rate hikes or cuts at the December meeting, though some economists anticipate the rates to remain steady through 2026.