Should we be wary of a decline in cross-yen pairs?

Should we be wary of a decline in cross-yen pairs?

27.10.2021

Yesterday, the three major U.S. stock indices all extended their gains, resulting in a market environment characterized by rising stock prices, falling interest rates, and lower oil prices.WTI crude oil is trading in the $84 range and remains at elevated levels. BlackRock CEO Fink stated at an investment conference held yesterday in Saudi Arabia, “Inflation will persist, and there is a high probability that prices will rise to $100 per barrel. The number of people who believe inflation is transitory should decrease.”

In the foreign exchange market, cross-yen pairs have been trending slightly lower during today’s Asian session, with GBP/JPY falling from yesterday’s high of 157.69 to 156.85. From a technical perspective, GBP/JPY appears to be forming a triple top on the 4-hour chart, so we need to carefully assess whether this will trigger a significant decline. If the pair does fall, there is no support until 155.92, so it could extend its decline.

Today, at 3:45 PM, France’s Producer Price Index and Consumer Confidence Index will be released; at 4:00 PM, Turkey’s trade balance;the U.S. MBA Mortgage Applications Index at 8:00 PM, U.S. Durable Goods Orders and Wholesale Inventories at 9:30 PM, the Bank of Canada’s (BOC) policy rate and statement at 11:00 PM, U.S. weekly crude oil inventories at 11:30 PM, a press conference by BOC Governor Macklem at midnight, and a U.S. 5-year Treasury auction at 2:00 AM.With so many economic indicators being released, we should pay close attention to price movements during U.S. trading hours and monitor currency strength.

Past Market Reports

1. 17.04.2026New

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

2. 16.04.2026New

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

3. 15.04.2026New

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

4. 14.04.2026New

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

5. 13.04.2026New

   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

6. 10.04.2026

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

7. 09.04.2026

   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?

8. 08.04.2026

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

9. 07.04.2026

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

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed