- The dollar fell in the market after Japan announced intervention in the market.
- EUR/USD went from 2002 lows to 0.9907.
- General outlook remains in favor of the dollar.
The EUR/USD recovered from lows since 2002 near 0.9800 and momentarily traded above 0.9900. The pair jumped in coincidence with the drop in USD/JPY following the intervention of the Bank of Japan.
After posting a daily high at 0.9907, EUR/USD pulled back finding support above the 0.9850 area and is trading around 0.9860/65, positive for the day.
The market continues to analyze what the Federal Reserve meeting left. On Thursday the Swiss National Bank also raised the benchmark interest rate by 75 basis points. Soon it will be the turn of the Bank of England.
Japanese intervention in the foreign exchange market generated a dollar crash. She is the first of its kind in 24 years. DXY falls 0.27%, after falling from a decade high at 111.80 to 110.45. Treasury bond yields remain near their highest in years.
The EUR/USD trend remains clearly bearish although the rebound gives the euro some air. Looking ahead to the next few hours, the first support appears at the 20-hour moving average, which is at 0.9842. Falling below would expose the area of ​​the lows since late 2002 around 0.9800/05. To the upside, the immediate barrier looms at 0.9910 followed by 0.9950.
Technical levels
Source: Fx Street
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