The USDJPY moved sharply lower today, driven by renewed concerns over potential Bank of Japan intervention as the pair pushed above the 160.00 level.
The USDJPY moved sharply lower today, driven by renewed concerns over potential Bank of Japan intervention as the pair pushed above the 160.00 level. That warning was enough to trigger aggressive selling.
The decline stalled just ahead of a key technical target—the 61.8% retracement of the move up from the February 12 low. That level comes in at 155.50, with the low reaching 155.57 before buyers stepped in and the pair bounced higher. On the corrective move higher, the USDJPY ran into resistance near a confluence zone between 157.25 and 157.50—where the 100-day moving average and the broken 38.2% retracement converge.
Sellers leaned against that area, keeping a lid on the recovery. Importantly, the earlier session low has not been retested, leaving that level as a key downside target. Meanwhile, the EURUSD moved higher in sympathy with the broader USD selling.