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EUR/JPY and AUD/JPY break support as USD/JPY is capped

A weekly performance breakdown shows only 0.1% to 0.3% of the move is tied to genuine Yen strength, with most of the pressure coming from dollar and Yen behavior across pairs.

Reported · Written up by our desk · Major Pairs

Action Forex said EUR/JPY and AUD/JPY have broken key technical support this week, and that similar weakness has also appeared in other Yen crosses, including GBP/JPY and NZD/JPY.

The outlet attributed the pattern to the way cross rates transmit moves: with intervention risk seen as capping USD/JPY, weakness in the Euro, Aussie, Sterling, and Kiwi is forced to show up in their Yen crosses.

Action Forex said a weekly performance breakdown indicates that only 0.1% to 0.3% of the EUR/JPY and AUD/JPY weakness reflects genuine Yen strength, while the rest reflects the interplay of the US dollar and Yen as two of the strongest majors.

The outlet added that the diagnostic points traders back to USD/JPY to distinguish a contained cross-driven move from a broader Yen rally, noting that EUR/USD was down around 0.9% over the week.

Latest closeEUR/USD 1.137 ▼0.1%|USD/JPY 157.34 ▼0.1%

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