Should investors be wary of the euro’s downward trend against the yen?

Should investors be wary of the euro’s downward trend against the yen?

08.12.2022

In yesterday’s U.S. currency trading, the U.S. dollar weakened against the euro, with the EUR/USD pair rising from 1.0442 to 1.0548. From a technical perspective, the EUR/USD pair has entered an ascending pennant pattern on the 4-hour chart, characterized by lower highs and higher lows. Therefore, it will be worth watching to see if the pair breaks out of the ascending pennant after a period of consolidation.

Despite the fact that the final figures for the third-quarter GDP in the Eurozone, released yesterday, rose to 0.3% from the market forecast of 0.2% and exceeded the previous reading, the euro fell against the yen.The EUR/JPY pair fell to 143.260 and has been trading around 143.500 during today’s Asian session. On the daily chart, the pair continues its downward trend with the 20-day moving average acting as resistance, so caution is advised regarding further declines during European trading hours.

Today’s economic indicators include: Swedish house prices at 4:00 PM, Hungary’s CPI and trade balance at 5:00 PM, South Africa’s Q4 consumer confidence index at 5:00 PM, South Africa’s current account balance at 6:00 PM, South Africa’s manufacturing output and Canada’s leading economic index at 8:00 PM, and at 9:00 PM, the EU’sRemarks by ECB President Lagarde, Brazil’s Retail Sales, and Mexico’s Consumer Price Index; at 10:30 PM, U.S. Initial Jobless Claims and remarks by SNB Board Member Meckl; at 12:30 AM, U.S. Weekly Natural Gas Inventories; and at 2:30 AM, remarks by BOC Deputy Governor Kozitsky. We should remain vigilant regarding the direction of the euro, which is currently weakening against the 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?