Should we keep an eye on the upside potential of the USD/JPY pair, which is showing strong upward momentum?
23.08.2022
- U.S. New Home Sales
- UK Manufacturing/Services PMI
Yesterday, the U.S. dollar rose alongside rising U.S. Treasury yields, with USD/JPY climbing from 136.699 to 137.644.The pair attempted to rise during today’s Asian session as well, but the momentum failed to hold, and it has since pulled back to 137.099. Technically, since USD/JPY has been rising after forming a double bottom on the 4-hour chart—where the lows were successively higher—it will be worth watching to see if the pair will rise again after a corrective pullback to the 4-hour 20-day moving average.
Among European currencies, the euro weakened against the pound. The EUR/GBP pair fell by approximately 60 pips from 0.8493 to 0.8434. This decline came after the pair touched the upper boundary of the ascending channel on the 4-hour chart. On the daily chart, both the highs and lows are forming lower lows, so we will need to closely monitor price movements as we head into the U.S. trading session.
Today, during European trading hours, the Turkish Consumer Confidence Index will be released at 16:00, followed by the French Manufacturing/Services PMI (flash estimates) at 16:15, the German Manufacturing/Services PMI (flash estimates) at 16:30, and the Eurozone Manufacturing/Services PMI (flash estimates) at 17:00.at 17:30 the UK Manufacturing/Services PMI (flash estimate), and during US trading hours at 22:45 the US Manufacturing/Services PMI (flash estimate), at 23:00 US New Home Sales, and at 26:00 the US 2-year Treasury auction. We will carefully monitor the upside potential of the USD/JPY pair, which is showing strong upward momentum.
Author: Keisuke Sakurai
