Japanese Yen Surges as USD/JPY and EUR/JPY Reach Oversold Levels Not Seen Since 2024
The Japanese yen's strength against both the US dollar and euro has reached levels not seen since 2024, according to FOREX.com. This momentum is being driven by various factors, including expectations of a potential Bank of Japan rate hike, ahead of Friday’s U.S. CPI report.
USD/JPY is approaching key technical levels, with daily momentum reaching oversold levels last seen in 2024. The currency pair is nearing the lower boundary of an uptrend channel established since 2023 and a support zone near 152, which also aligns with the lower boundary of the larger channel that has been in place since 2023.
EUR/JPY is testing the 27.2% retracement level of the 2025-2026 advance, while daily momentum has reached oversold levels last seen in 2024. A breakdown below this level could signal further weakness in the euro and additional strength in the yen.