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EUR/JPY holds below 100-day SMA as Japan intervention risks loom
The EUR/JPY trades near 179.85 while traders watch for potential Japanese currency intervention, especially after the Bank of Japan’s last 25 bps rate hike and less hawkish-than-expected remarks from Governor Kazuo Ueda.
EUR/JPY is trading in negative territory around 179.85 in early European hours on Thursday, with technical analysis pointing to a bearish near-term bias as the pair stays below the 100-day simple moving average and the 20-period Bollinger middle band, according to FXStreet.
FXStreet notes that intervention risk from Japanese authorities is helping support the yen versus the euro, particularly in light of reports of a recent rate check. The article also highlights that the Bank of Japan raised policy rates by 25 bps last week, while Governor Kazuo Ueda’s comments fell short of expectations for a more hawkish shift, leaving analysts concerned about near-term yen selling pressure if markets do not anticipate further tightening.
The move comes ahead of Germany’s IFO survey later on Thursday, with FXStreet citing FX-market commentary from Matthew Ryan of Ebury Partners, who said intervention is a blunt tool without a forceful monetary policy response. Rabobank is also cited linking deepening US Japan ties to markets, including the yen carry trade.
On levels, FXStreet flags resistance at the 180.00 psychological mark, followed by 180.70 and the 100-day SMA near 184.05. Support is noted at the September 17 low of 178.48 and the September 14 low of 177.45, with another contention area near 175.91.