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Yen rebounds for third day against dollar and euro after intervention

Japan authorities and the US central bank backed the move, with the yen up nearly 5% versus the dollar and 4.2% versus the euro over the intervention period.

Reported · Written up by our desk · Major Pairs

The Japanese yen extended its rebound for a third straight day against both the US dollar and the euro after a sharp prior slide tied to coordinated intervention by Japan’s authorities and the US central bank, Action Forex reported.

The outlet said massive intervention buying helped lift USDJPY by nearly 5% and EURJPY by 4.2%, bringing weekly gains of 3.9% versus the dollar and 3.1% versus the euro.

While the yen’s bounce has put USDJPY back above key technical levels, Action Forex noted that policymakers signaled further intervention cannot be ruled out, keeping the near term skew to the downside for USDJPY and EURJPY.

On the charts, Action Forex said USDJPY moved through the daily Ichimoku cloud and broke above the 200-day moving average and nearby trendline support, but highlighted that the broken 200DMA is now expected to act as resistance, with key next downside supports at 155.02 to 154.78.

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