The Euro (EUR) gains traction against the Japanese Yen (JPY) on Friday, recovering after briefly slipping to its lowest level since September 9 on Thursday. The Japanese Yen remains broadly under pressure against major peers, weighed down by political uncertainty as the ruling Liberal Democratic Party (LDP) prepares to elect its new leader this weekend, a contest that will effectively determine the country’s next prime minister. The HCOB Composite Purchasing Managers Index (PMI) for September rose to 51.2 from 51.0 in August, in line with expectations, while the Services PMI rose to 51.3, missing the 51.4 forecast. The weaker data offered little support to the common currency, leaving it struggling to extend gains despite the Yen’s broader weakness. Ueda also highlighted global uncertainties, including softer US labour market trends and tariff-related headwinds, which could weigh on corporate wage growth and keep the timing of any further policy moves uncertain.