USDJPY edged higher from its lowest level in almost three months after a three-day slide driven by coordinated intervention from Japan's authorities and the US central bank to support the weakening yen. The daily technical picture has turned bearish for both USDJPY and EURJPY, and the authorities have signaled that further intervention cannot be ruled out.
USDJPY edged higher from its lowest level in almost three months, clawing back part of a three-day slide triggered by coordinated intervention from Japan's authorities and the US central bank to support the weakening yen. The intervention buying lifted the yen nearly 5% against the dollar and 4.2% against the euro. That leaves the yen up 3.9% against the dollar and 3.1% against the euro for the week.
Further intervention remains on the table
But the authorities signaled that further intervention cannot be ruled out, which keeps the near-term focus on the downside. As a result, the current, still-mild bounce looks like positioning for a fresh push lower in both USDJPY and EURJPY rather than a genuine reversal.
Technical picture turns bearish for both pairs
USDJPY broke through its 200-day moving average at 157.92 and trendline support at 157.10 after surging through a daily Ichimoku cloud spanning 160.67 to 158.48. EURJPY broke its own 200-day average at 183.62 and fell to its lowest level since Nov. 17, 2025, at 179.36, on Monday.
The daily technical analysis picture has turned bearish for both pairs. Stretched indicators after the sharp fall suggest bears may take a breather, though upticks should stay limited given the persisting risk of further intervention.
Broken averages now cap the upside
The broken 200-day average has turned into a resistance level that could keep the rebound in check. It capped Monday's action and guards the next barrier at 158.48, the base of the daily cloud. A break below 155.02 and 154.78 — the May 6 low and the 38.2% Fibonacci retracement of the 139.88-to-163.98 rally — would generate a stronger reversal signal and support the case for a change in the 16-month uptrend.
For EURJPY, upticks should ideally hold below the 182.50 zone — the 38.2% Fibonacci retracement of the 187.43-to-179.36 post-intervention fall — to keep bears in control. A firm break through the cracked 180 psychological support would open the way toward 175.28 and 172.70, the 100-week moving average.
Source: ActionForex
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