All eyes are on whether the current trend of yen and U.S. dollar buying will shift

All eyes are on whether the current trend of yen and U.S. dollar buying will shift

23.12.2022

The U.S. dollar strengthened yesterday after the U.S. third-quarter GDP, released yesterday, was revised upward from the market forecast of 2.9% to 3.2%. The USD/JPY pair broke through the 23.6% Fibonacci retracement level of the sharp decline triggered by the Bank of Japan’s policy change on the 20th of this week.During today’s Asian session, the pair is trading around 132.656. Since it has also broken above the 10-period moving average (MA) on the 4-hour chart, traders should watch for a continued rebound.

European currencies fell as the pound weakened against the yen following yesterday’s release of UK third-quarter GDP data, which showed negative growth of -0.3%. The GBP/JPY pair dropped by approximately 140 pips from 160.253 to 158.775, moving in the opposite direction to USD/JPY. Although the pair has rebounded during today’s Asian session, the daily RSI remains just below 30, indicating room for further decline, so caution is advised regarding a potential drop during the European session.

Today, during European trading hours, the French Producer Price Index will be released at 16:45, followed by Turkey’s foreign visitor arrivals at 17:00, the Philippine unemployment rate at 18:00, and India’s foreign exchange reserves at 20:30.at 21:00, Mexico’s trade balance; and during U.S. trading hours, at 22:30, Canada’s GDP, U.S. durable goods orders, U.S. personal income, and the U.S. core PCE deflator; at 24:00, U.S. new home sales and the University of Michigan Consumer Sentiment Index; and at 25:00, Canada’s fiscal balance.We will be closely monitoring whether the current currency strength dynamics—with the yen and the U.S. dollar both being bought—will shift on this final day of the week.

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?