USD/JPY plunges on Japanese intervention. The currency pair dropped 2.4% to a two-month low following Japan's $34.5 billion yen-buying intervention on Thursday, with additional sharp declines on May 6 suggesting another intervention may be imminent. Technical analysis reveals a bearish breakdown from an ascending wedge pattern at 157.55, confirming downside momentum. The recent 1.5% rebound to 157.94 appears to be corrective rather than a genuine reversal within the newly formed short-term downtrend. Key support levels now in focus include 155.55, 154.65, and 154.05. This intervention-driven weakness reflects Japan's continued efforts to strengthen the yen against sustained dollar pressure, marking a significant shift in currency market dynamics.
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