Will the rebound in cross-yen pairs continue?

Will the rebound in cross-yen pairs continue?

12.07.2021

Last weekend, U.S. stock prices rebounded, with all three major stock indices rising; the Nasdaq closed at 14,701 points, up 142 points from the previous day. While the overall market sentiment was risk-on, the Skew Index—which quantifies market distortions—fell back to 155, suggesting that market overheating has subsided. The Fear Index (VIX) also declined to 16.1.

In the foreign exchange market, cross-yen pairs that had been falling rebounded, with GBP/JPY recouping the previous day’s losses and rising by about 250 pips from 150.66 to 153.22. However, since the pair remains below the 20-day moving average on the daily chart, we need to carefully assess whether the yen selling trend will continue. EUR/JPY also rebounded, rising from 129.6 to 130.8.

Today, during European trading hours, the Swiss unemployment rate will be released at 16:00, followed by South African manufacturing production at 20:00. During U.S. trading hours, remarks by William, President of the New York Fed, are scheduled for 22:30, followed by a U.S. 3-year Treasury auction at 24:30, and remarks by Kashkari, President of theand at 02:00, a U.S. 10-year Treasury auction. With the U.S. Consumer Price Index due on Tuesday the 13th, policy rate announcements from New Zealand and Canada on Wednesday the 14th, and U.K. employment data on Thursday the 15th, we will be closely monitoring the situation to see if there are any shifts in the relative strength between European currencies and the U.S. dollar.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran