EUR/JPY, GBP/JPY, USD/JPY – “Golden” Recovery After Intervention. What’s Next?

Following the intervention-driven moves at the end of July and beginning of August, the Japanese yen has quickly lost momentum and weakened again against the major currencies, particularly the British pound and the euro.

The almost “mechanical” selling of the JPY continues despite the relatively brutal intervention-driven moves seen at the beginning of the month.

On the one hand, there have been no significant changes in the fundamental or geopolitical environment over the past few months, and the current trend can still largely be explained by the same underlying factors.

On the other hand, positioning may now be becoming even more important. Short-lived interventions that fail to produce a sustainable reversal can eventually have the opposite effect, encouraging market participants to rebuild or even increase short-JPY positions over the medium term.

In other words, intervention can create a powerful short-term move, but if the broader trend remains intact, the market may simply use the correction as another opportunity to sell the yen.

Technical Levels

USD/JPY – The key area is around 159.70–160.50. There is no single precise level within this range, as the market continues to trade in a volatile August environment.

EUR/JPY – The 184.80–185.30 area looks like a strong resistance zone.

GBP/JPY – The 216.20–216.60 area should represent a strong upside barrier.

These levels could become important in determining whether the current JPY weakness continues or whether intervention risk and profit-taking trigger another meaningful correction.

By Born2trade market research department

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