Suspected BOJ intervention pushes EUR/JPY, USD/JPY down while AUD/USD rallies
Suspected BOJ intervention following a softer US CPI print on Thursday pushes EUR/JPY, USD/JPY down while AUD/USD rallies.
EUR/JPY short-term topped out
EUR/JPY has rapidly come off Thursday's ¥175.42 multi-decade high and so far dropped to ¥171.51, a level above which it is trying to hold as the Bank of Japan (BoJ) is suspected to intervene in the currency markets. Failure there and at the 24 June high at ¥171.44 would put the ¥170.00 region back on the cards.
Minor resistance can now be found at the 8 July low at ¥173.51 ahead of the ¥174.74 August 1992 peak.
USD/JPY takes a huge hit
USD/JPY got close to its ¥161.95 early July high before falling out of bed to ¥157.42 where the 55-day simple moving average (SMA) acted as support amid suspected BoJ currency intervention.
Further range trading above Thursday's low at ¥157.42 is expected to be seen on Friday with minor resistance spotted at the 24 June high at ¥159.93 and the 28 June and 8 July lows at ¥160.26.
AUD/USD trades in 7-month highs
AUD/USD has so far risen to $0.6798, above which lies the 22 December high at $0.6825. Upside pressure should be maintained while the 9 July low at $0.6724 underpins.
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