Will the Rise of European Currencies Against the Yen Continue?
18.10.2022
- ZEW Economic Sentiment Survey (Europe)
- U.S. NAHB Housing Market Index
In the U.S. currency market yesterday, the U.S. dollar faced resistance as the New York Fed’s October Manufacturing Index—released yesterday—fell sharply to -9.1% from the previous reading of -1.5%. Although the USD/JPY pair broke into the 149-yen range, its daily trading range was limited to 60 pips.During today’s Asian trading session, the pair is seeking direction while finding support at the 20-period moving average on the hourly chart; we will be watching to see if price action becomes more defined during U.S. trading hours.
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 risen 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 yet reached 70 and the market does not appear overheated, investors should remain cautious about a potential rally following a correction.
Today’s schedule includes the German ZEW Economic Sentiment Survey and the Eurozone ZEW Economic Sentiment Survey at 18:00 European time; the Turkish Housing Price Index at 20:30; Canadian Housing Starts at 21:15; Canadian International Securities Turnover at 21:30 U.S. time;at 22:15, U.S. industrial production and capacity utilization; at 23:00, the U.S. NAHB Housing Market Index; at 27:00, remarks by Bostic, President of the Atlanta Fed; and at 29:00, U.S. securities investment flows into the U.S.We will monitor the market direction with caution to see if European currencies continue to rise against the yen today.
Author: Keisuke Sakurai
