Should we be wary of the Japanese yen's weakening trend?

Should we be wary of the Japanese yen's weakening trend?

05.12.2022

In the U.S. currency markets last weekend, the euro fell against the dollar following the release of strong U.S. employment data. The EUR/USD pair dropped by approximately 110 pips, from 1.0540 to 1.0427. However, the downward momentum did not persist, and during today’s Asian trading session, the pair rose to 1.0584, surpassing its pre-employment-data level. This marks the highest level since June 28 of this year. It will be interesting to see if this upward trend continues.

European currencies saw the euro weaken against the yen after the EU’s October Producer Price Index (PPI), released last Friday, came in below market expectations on a year-over-year basis. The euro/yen pair fell to 140.763, its lowest level in two months. While the Japanese yen had been showing strength, the euro/yen pair rebounded at the start of the week as the yen became the weakest currency. It has since recovered to 142.389.As the pair is currently trading just below the 20-period moving average (MA) on the 4-hour chart, we will be watching closely to see if this momentum-driven rebound continues.

Today, during European trading hours, Turkey’s Consumer Price Index and Producer Price Index will be released at 16:00; France’s Services PMI at 17:50; Germany’s Services PMI at 17:55; the Eurozone’s Services PMI at 18:00; the UK’s Services PMI at 18:30;at 7:00 PM, Eurozone Retail Sales, and during U.S. trading hours at 10:30 PM, Canadian Housing Starts, at 11:45 PM, U.S. Services PMI, at 12:00 AM, U.S. Manufacturing Orders Index, and the U.S. ISM Non-Manufacturing PMI. We should remain vigilant regarding the trend of the weakening Japanese yen.

Past Market Reports

1. 21.04.2026New

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

2. 20.04.2026New

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

3. 17.04.2026New

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

4. 16.04.2026New

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

5. 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

6. 14.04.2026

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

7. 13.04.2026

   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. 10.04.2026

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

9. 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?

10. 08.04.2026

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