Will the rise of European currencies against the yen continue?

Will the rise of European currencies against the yen continue?

18.10.2022

In yesterday’s U.S. trading session, the U.S. dollar faced resistance as the October New York Fed Manufacturing Index, released yesterday, fell sharply from the previous reading of -1.5% to -9.1%. Although the USD/JPY pair broke into the 149 yen range, the daily trading range was limited to 60 pips.During today’s Asian session, price action has been ranging while seeking direction, supported by the 20-period moving average on the hourly chart. We will be watching to see if price movement becomes clearer during the U.S. session.

European currencies rose against the yen, with both the euro and the pound gaining ground. The euro/yen pair rose by about 2 yen, from 144.587 to 146.733, hitting a new high for the year. The euro/yen has climbed to levels not seen since late December 2014, and on a weekly basis, the next key level is 149.445.Since the weekly RSI has not reached 70 and there are no signs of overheating, investors should remain cautious about a potential upward move following a correction.

Today’s schedule includes the German ZEW Economic Sentiment Survey and the Eurozone ZEW Economic Sentiment Survey at 18:00 CET; the Turkish Housing Price Index at 20:30; and Canadian Housing Starts at 21:15. During U.S. trading hours, the Canadian International Securities Turnover will be released at 21:30, followed by U.S.Industrial Production and Capacity Utilization, at 21:15 US Industrial Production and Capacity Utilization, at 23:00 US NAHB Housing Market Index, at 27:00 remarks by Bostic, President of the Atlanta Fed, and at 29:00 US Foreign Direct Investment. We will monitor the market direction with caution to see if European currencies continue to rise against the yen today.