Euro Crashes Against Yen Amid Intervention Fears

The Euro tumbled against the Japanese Yen on Wednesday as speculation about possible intervention by Japanese authorities grew. The EUR/JPY cross-pair plummeted to a two-week low of 183.64 after reaching a high of 185.75, with the current price trading at 184.03 and down over 0.89%. The sudden strength of the Yen has raised concerns about potential intervention in the FX markets.

Analysts cited by Bloomberg commented that 'The market remains on high intervention alert.' Meanwhile, US Treasury Secretary Scott Bessent defended the Treasury's actions to prop up the Yen, stating that extreme volatility could push US Treasury yields higher. He expressed his expectation that Bank of Japan Governor Kazuo Ueda would take the right monetary policy stance.

The EUR/JPY price action is also reflected in the technical analysis, with the Relative Strength Index (14) easing to about 43, indicating fading upside momentum and a mildly bearish near-term bias. The cross-pair trades below the clustered resistance of the parallel channel boundary at 184.15 and the grouped simple moving averages around 184.81.