USD/JPY Breaks Below Key Levels After Joint US-Japan Intervention
The USD/JPY pair has continued to decline following a joint intervention effort between Japan and the US. On Friday, the currency pair broke below its key daily moving averages for the first time since July last year, reaching a low of 155.23. This marks the lowest levels seen in May.
Initially, it seemed like Tokyo officials were going to face a setback as USD/JPY continued to test a push back above the 160 mark after Thursday's intervention play. However, they resorted to seeking US help in a joint effort to bring down the currency pair.
The move has had its intended effect, keeping the currency pair in check. However, experts are questioning whether this is a sustainable solution and if Japan will continue to rely on the US for support.
Some analysts believe that the US stepping in to help Japan may have unintended consequences, including amplifying a dollar policy stance. This could put pressure on the Trump administration ahead of the midterms.