Forex
Dollar Selloff Hits 155 Yen Support Amid Joint Intervention
The US Dollar had a tumultuous start to the trading week, with significant fluctuations against key currencies.
The USD/JPY pair was particularly affected, breaking below the 160.00 level and testing its 200-day EMA support at 155 yen.
This sell-off has been attributed to joint intervention by the United States and Japan in the currency markets to stabilize the Japanese Yen, which is a key funding currency for global borrowing.
The market's reaction was swift, with the USD/JPY pair stopping just short of 155 yen. While this level has held so far, the question remains whether the market can bounce back from this significant support level.