EUR/JPY recovers above 140.00 following sharp decline

EUR/JPY dropped to a fresh multi-week low at 139.25 on Thursday.
Japanese government finally intervened in the FX market.
The pair trades deep in negative territory despite latest rebound.

Eren Sengezer FXStreet

EUR/JPY lost nearly 300 pips during the European trading hours and touched its lowest level in two weeks at 139.25 before staging a rebound. As of writing, the pair was trading at 140.58, where it was still down nearly 1% on a daily basis.

During the Asian trading hours, the Bank of Japan (BoJ) announced that it left the policy rate unchanged at -0.1% as expected and maintained the 10-year Japanese Government bond yield target at 0%. The BoJ's inaction caused the Japanese yen to come under selling pressure and EUR/JPY climbed to a daily high of 143.70.

In a dramatic turn of events, Japan's top currency diplomat Masato Kanda confirmed over that they have intervened in the FX market and JPY recorded impressive gains against its major rivals. With the initial reaction, USD/JPY lost 500 pips, CHF/JPY fell over 3% and GBP/JPY fell from 164.50 to a seven-week low of 159.65.

Japanese Finance Minister Shunichi Suzuki and Kanda are expected to brief reporters on the decision to intervene in the FX market at 0930 GMT.

Later in the day, the European Commission will release the preliminary Consumer Confidence data for September.

Technical levels to watch for

EUR/JPY

Overview
Today last price	140.64
Today Daily Change	-1.11
Today Daily Change %	-0.78
Today daily open	141.75

Trends
Daily SMA20	141.44
Daily SMA50	139.2
Daily SMA100	139.15
Daily SMA200	135.49

Levels
Previous Daily High	143.6
Previous Daily Low	141.64
Previous Weekly High	145.64
Previous Weekly Low	142.3
Previous Monthly High	139.73
Previous Monthly Low	133.4
Daily Fibonacci 38.2%	142.39
Daily Fibonacci 61.8%	142.85
Daily Pivot Point S1	141.06
Daily Pivot Point S2	140.37
Daily Pivot Point S3	139.1
Daily Pivot Point R1	143.02
Daily Pivot Point R2	144.29
Daily Pivot Point R3	144.98

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.