EUR/JPY Collapses on Double-Intervention

Last week, the news dropped that the US and Japan executed a joint buy program in the hope of strengthening the yen. While the BoJ intervening by itself has often led to the currency eventually continuing in its original path, joint interventions are what have historically led prices to put in a durable, multi-year top or bottom. The question is thus whether this time around will be the same story.

EUR/JPY on the Daily Chart

As the USD is actively being repriced, it makes more sense to value it against a currency whose value is currently stable. This brings us to the cross pair of EUR/JPY. Plotting support and resistance levels here teaches us the following:

• Upside (resistance) levels: 183.2 and then 184.8
• Downside (support) levels: minor level at 180.8 and then 178-179