Should investors be wary of the direction of cross-yen pairs, given the pronounced trend of yen selling?

Should investors be wary of the direction of cross-yen pairs, given the pronounced trend of yen selling?

06.12.2022

In yesterday’s U.S. currency markets, the U.S. dollar emerged as the strongest currency after the November ISM Non-Manufacturing PMI, released yesterday, came in at 56.5, exceeding the market forecast of 53.4. The EUR/USD pair fell by approximately 110 pips from 1.0594 to 1.0481. This decline followed a rise to a five-month high.Since the EUR/USD has firmly broken above the 200-day SMA on the daily chart, we should watch for a technical correction and pullback in the near term.

Among European currencies, the euro rose sharply against the yen. It climbed approximately 2.1 yen, from 141.430 to 143.606.After consolidating just above the 200-period simple moving average (SMA) on the hourly chart, the EUR/JPY broke through the resistance without pulling back, touching 143.919. It then rebounded up to the 75-period SMA on the 4-hour chart. As the EUR/JPY is currently rising from the lower boundary to the upper boundary of the downtrend line, we will be watching closely to see if the rebound continues up to the upper boundary of the trend line, around the 145 yen level.

Today, during European trading hours, German manufacturing orders are scheduled for 16:00, the Norwegian Regional Network Survey for 18:00, the UK Construction PMI and South Africa’s Q3 GDP for 18:30, and New Zealand dairy prices and Mexico’s total fixed capital formation for 21:00. During U.S. trading hours, the U.S. trade balance and Canada’s trade balance are scheduled for 22:30,and at 12:00 AM, the Canadian Ivey PMI. We should remain cautious regarding the direction of cross-yen pairs, where the trend of yen selling is particularly pronounced.

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?