USDJPY intervention talk sent the pair sharply lower on Wednesday, with the drop reaching 160.31 and bringing key support levels into focus.
Earlier in the day, USDJPY broke below its 200-hour moving average and an upward sloping trendline near 163.36. That break turned near-term momentum lower. It also may have given Japanese officials a chance to add to the move if intervention was still under consideration.
Since then, the pair has moved through several support levels. The price later traded toward the July low at 160.446. It also touched 160.87 at one stage before extending the fall.
USDJPY Intervention Nears Key Support
On the hourly chart, the rise from the early May low to last week’s high comes in at 160.56. That level sits just above the July low at 160.446. If the pair falls below both marks, traders would then look to the 100-day moving average at 160.107.
Notably, USDJPY last traded below the 100-day moving average on May 14. Below that, the next swing area comes in down to 159.733. The 50% midpoint of the same upside move stands at 159.503.
Yields Ease as Stocks Advance
Meanwhile, Treasury yields pulled back from their highs. The 10-year yield traded near the day’s low, though it was still up 3.7 basis points at 4.659%. The 2-year yield fell 1.4 basis points to 4.221%.
Additionally, stocks moved higher. The NASDAQ led the gains with a rise of 2.14%. The NASDAQ 100 climbed even more, up 2.66%.
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Source: InvestingLive
