Japanese yen surges on likely intervention of Japan’s authorities

Japanese yen surged across the board on Tuesday, gaining around 3% vs its major counterparts, in the biggest daily gain since late 2022.

The rally was sparked by comments from Japan’s FinMin who said that timing to take decisive action in the market was nearing, while some reports, citing government and the central bank, said that Japanese authorities intervened today to support yen, which hit the lowest levels since mid-2024, when the last intervention have occurred.

Today’s action follows the recent narrative that signaled readiness of authorities to intervene when USDJPY breaks resistance at 160 zone

Fresh acceleration hit the levels last traded in late February and marked retracement of near 61.8% of 152.39/160.72 rally, with significant bearish signal seen on surge through ascending and thickening daily Ichimoku cloud (spanned between 157.59 and 155.99).

Daily technical studies weakened after today’s action (steep falling momentum broke into negative territory / MAs turned mainly to bearish setup) although close below daily cloud will be required to signal that bears gained full control.

In such scenario, break of 155.50 (Fibo 61.8%) would expose targets at 153.97 (200DMA) and 153.61 (trendline support).

Near term bias, however, is expected to remain with bears while the price stays within the cloud (top lays at 157.59).

Res: 157.24; 157.59; 158.09; 158.72
Sup: 156.50; 155.99; 155.50; 154.26