- EUR/JPY has fallen to a fresh multi-week low at 139.25 on Thursday.
- The Japanese government has finally intervened in the foreign exchange market.
- The pair is trading in negative territory despite the latest bounce.
The pair EUR/JPY has lost almost 300 pips during the European session and touched its lowest level in two weeks at 139.25 before staging a rebound. At the time of writing, the pair trades at 140.64, still losing 1.11% on day.
During the Asian session, the Bank of Japan (BoJ) announced that it was leaving the monetary policy rate unchanged at -0.1%, as expected, and kept the 10-year Japanese government bond yield target at 0%. BoJ inaction put the Japanese yen under selling pressure and EUR/JPY hit a daily high of 143.70.
In a dramatic turn of events, Japan’s top foreign exchange diplomat, Masato Kanda, confirmed that they had intervened in the forex market and the yen posted impressive gains against its main rivals. As an initial reaction, USD/JPY lost 500 pipsCHF/JPY fell more than 3% and GBP/JPY fell from 164.50 to a seven-week low of 159.65.
Japanese Finance Minister Shunichi Suzuki and Kanda are expected to brief reporters on the decision to intervene in the forex market.
Later, the European Commission will publish preliminary consumer confidence data for September.
EUR/JPY technical levels
Source: Fx Street
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