EUR/JPY, USD/JPY drop on yen strength while AUD/USD hits 19-month high
EUR/JPY, USD/JPY drop on yen strength following Japan ruling Liberal Democratic Party election while AUD/USD hits 19-month high.
EUR/JPY suddenly drops
EUR/JPY reversed its fortunes and dropped like a stone, weighed down by a strong yen rally following the results of the ruling Liberal Democratic Party election last Friday. Shigeru Ishiba, who is seen as less dovish than his rival Sanae Takaichi, won the leadership of Japan’s ruling party, effectively making him the next prime minister. Furthermore data released today showed that Japanese retail sales grew more than expected in August, while industrial production came in weaker-than-anticipated.
The 12 September high at ¥157.51 represents the next downside target, followed by the ¥155.15 mid-September low. Meanwhile resistance can be found around the ¥161.16 23 September high.
USD/JPY resumes its descent
USD/JPY topped out at ¥146.49 with the current September low at ¥139.59 being back in sight, were support at the ¥141.70 August low to give way.
Minor resistance can be spotted at the 25 September low at ¥142.90.
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