EUR/JPY Collapses on Double-Intervention
Date: 04 August 2026
Overview
Last week, a significant development occurred in the foreign exchange market as the United States and Japan executed a joint buy program aimed at strengthening the Japanese yen. This intervention is noteworthy because, historically, joint interventions have led to more durable price movements compared to unilateral actions by the Bank of Japan (BoJ), which often see the currency revert to its previous trend.
Market Analysis
The EUR/JPY currency pair has been particularly affected by this intervention. As the US dollar is currently undergoing a repricing, it is more logical to evaluate it against a currency that is stable, such as the yen. Analyzing the EUR/JPY pair reveals critical support and resistance levels:
- Upside (Resistance) Levels: 183.2 and then 184.8
- Downside (Support) Levels: minor level at 180.8 and then 178-179
Conclusion
The effectiveness of the recent joint intervention by the US and Japan remains to be seen. Traders and analysts are keenly observing whether this will lead to a significant shift in the EUR/JPY pair, potentially marking a multi-year top or bottom as has been the case in previous interventions.