Selling on rallies intensified in euro-yen in the ¥178 range, and downside probing toward the ¥176 range continued as resistance above remained strong. Since the start of the week, concerns over intervention by Japan and the United States and economic concerns in Europe have continued to weigh on the market.
During last week's trading from 5 to 12 October, euro selling and buying on dips continued to pull against each other. Selling on rallies intensified in the ¥178 range, reaffirming ¥178 as a ceiling. At the same time, an autonomous rebound was seen in the first half of the week, and the pair at times extended its gains to around ¥178.34.
However, the ¥178 range turned into resistance. The pair plunged to ¥176.55 on the evening of the 7th, and formed a base in the mid-¥176 range from the 7th to the 8th. It also fell to ¥176.53 during the Tokyo morning session on the 8th, again testing the recent low of ¥176.22.
Toward the weekend, the pair recovered to the ¥177.80 range on short covering, but failed to reach the ¥178 range, confirming the renewed strength of selling on rallies. As of midday on the 13th, it had fallen back to around ¥176.80, bringing downside risks into focus.
On the fundamental side, comments from Japanese and U.S. officials discouraging yen selling and weakness in Europe weighed on the pair. Technically, the ¥178.00–¥178.20 roll reversal functioned as resistance, clarifying support below and resistance above.