Should we be wary of the yen’s unstoppable decline?

Should we be wary of the yen’s unstoppable decline?

13.05.2022

U.S. currencies traded firmly against most major currencies yesterday, with the exception of the yen; the EUR/USD pair fell by about 170 pips from 1.052 to 1.035.Technically, the EUR/USD pair began its decline after encountering resistance at the 20-period moving average (MA) on the 4-hour chart. In addition to setting a new low for the year, it has fallen to the level of the December 2016 low. Although a temporary rebound may occur, we should remain vigilant as the pair could resume its downward trend.

Among European currencies, the euro fell against the yen, with the EUR/JPY pair dropping more than 400 pips from 136.74 to 132.65. The chart pattern suggests that the long-standing trend of yen weakness may have come to a temporary halt. We will be watching closely to see if the EUR/JPY pair extends its decline toward the 200-day SMA at around 131.00.

Today’s schedule includes the French Consumer Price Index at 15:45 CET, Turkish Industrial Production at 16:00 CET, and Eurozone Industrial Production at 18:00 CET; followed by the U.S. Import Price Index at 21:30 ET, the University of Michigan Consumer Sentiment Index (Preliminary) at 23:00 ET,at 12:00 AM, remarks by Nagel, President of the German Bundesbank, and Kashkari, President of the Minneapolis Fed; and at 1:00 AM, remarks by Mester, President of the Cleveland Fed. I intend to carefully monitor how currency strength and weakness evolve heading into the weekend.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

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

3. 20.04.2026New

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

4. 17.04.2026New

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

5. 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

6. 15.04.2026

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

7. 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

8. 13.04.2026

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

9. 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?

10. 09.04.2026

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