Volatility Strikes Currency Market as Joint Intervention Takes Hold

The global currency market remains highly volatile following a joint US-BOJ intervention that has pulled down the Dollar Index and USDJPY sharply. The supports seen near 99.50 and 154.60 for these currencies are likely to hold, producing a decent bounce in the near term.

The Euro's immediate upside may be limited to 1.1600 as it continues to trade within its current range. Meanwhile, EURJPY has plunged to 179.37 but has moved up above 180. For this currency pair to avoid further decline towards 175, trade must sustain above 180.

The US Treasury Yields have come down in early trades following a decrease in oil prices. However, support is present to limit the downside on yields, with the bias remaining bullish. The yields still have room to rise more before resuming their broader downtrend.