We need to be on the lookout to see if the downward momentum in cross-yen pairs will continue

We need to be on the lookout to see if the downward momentum in cross-yen pairs will continue

13.01.2023

In the U.S. currency market yesterday, the U.S. dollar became the weakest currency as the December Consumer Price Index (CPI), released yesterday, fell to 6.5% from 7.1% the previous month, signaling that inflation may have peaked and leading to expectations that the Federal Open Market Committee (FOMC) will reduce the magnitude of interest rate hikes at its meeting next month.The EUR/USD pair rose from 1.0731 to 1.0863. It hit a new high for the year and broke above the weekly 75-day moving average (MA), which had been acting as resistance. Technically, the EUR/USD is rising with support from the weekly 10-day MA, so we should watch for a rally following a period of consolidation.

Among European currencies, the Swiss franc saw the sharpest decline against the yen, with the CHF/JPY pair falling from 142.192 to 139.028. Following yesterday’s decline, the CHF/JPY pair has entered a downtrend along the weekly 20-day moving average, and the weekly RSI has reversed near the 40 level. On the higher timeframe of the monthly chart, the pair is trading below the 10-day moving average, so we need to assess whether the franc’s weakness will continue.

Today, at 4:00 PM: UK Industrial Production, UK Trade Balance, UK Manufacturing Output, and Sweden’s Consumer Price Index; at 4:45 PM: France’s Consumer Price Index; at 7:00 PM: Eurozone Industrial Production and Eurozone Trade Balance; at 10:30 PM: US Import Price Index; and at 11:15 PM: US Federal Reserve’s Williams:Remarks by NY Fed President Williams, at 12:00 AM: US University of Michigan Consumer Sentiment Index and remarks by Kashkari, President of the Minneapolis Fed, at 12:20 AM: Remarks by Harker, President of the Philadelphia Fed, and at 1:00 AM: Russian Consumer Price Index. We want to carefully assess the direction to determine whether the downward momentum in cross-yen pairs will continue.

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?