• U.S. Treasury directed Fed to sell euros and buy yen on Friday, July 31

• As a result EUR/JPY has dropped 187.44 to 176.17

• Last trading 176.74 the next downside targets are 175.54 and 173.92

• The main target for the drop led by the US is 171.86

• Correction targets for 2025/2026 bull trend 175.26, 171.34, 167.43

• There is a strong chance of further action to prop yen should it fall

• Support of both BOJ and FED has encouraged specs to sell

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EURJPY correction targets


EURJPY since US treasury sold

(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)