Market participants are watching closely to see how currency strength and weakness will shift amid the ongoing yen appreciation trend

Market participants are watching closely to see how currency strength and weakness will shift amid the ongoing yen appreciation trend

09.01.2023

Last weekend, the U.S. dollar became the weakest currency after the December U.S. employment report released on Friday, the 6th, showed that average hourly earnings fell below the previous month’s and the previous year’s figures, which was interpreted as a slowdown in wage inflation. The EUR/USD pair rose by approximately 160 pips from 1.0480 to 1.0647.The upward trend has continued during today’s Asian trading session, with the pair surpassing the highs of the past three days. From a technical perspective, the EUR/USD pair rebounded after the 200-period simple moving average (SMA) on the 4-hour chart acted as a support level, so it will be worth watching to see if the upward trend continues.

European currencies weakened slightly against the yen after the December Harmonized Index of Consumer Prices (HICP) fell from 10.1% to 9.2%. The euro/yen pair dropped by approximately 110 pips, from 141.451 to 140.230.Although the pair is currently trading just below the 200-day SMA on the daily chart, the ±3σ Bollinger Bands are trending downward, so caution is warranted regarding a potential continued decline.

Today, at 15:45 Asia time, Switzerland’s unemployment rate will be released; at 16:00 European time, Germany’s industrial production; at 16:45, France’s trade balance and current account balance; at 19:00, the Eurozone’s unemployment rate; at 20:00, Canada’s leading economic index; at 21:00, Mexico’s producer price index; at 22:30 U.S. time, Canada’s housing starts;at 12:30 a.m. UK: Remarks by PMC Committee Member Pill; at 2:30 a.m. US: Remarks by Bostic, President of the Atlanta Fed; and at 5:00 a.m. US: Consumer Credit Balance. We will be closely monitoring how currency strength dynamics shift, as the trend has reversed from yen weakness to yen strength.

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?