Market participants may be wary of cross-yen movements ahead of the Bank of Japan’s monetary policy decision

Market participants may be wary of cross-yen movements ahead of the Bank of Japan’s monetary policy decision

17.01.2023

Yesterday, the U.S. dollar recovered from its recent weakness to become the strongest currency. The EUR/USD pair fell by about 70 pips from 1.0874 to 1.0800.During today’s Asian session, the pair has been trending lower, capped by the 20-period moving average (MA) on the hourly chart. On the daily chart, the RSI has touched 70 and is now trending downward; since the pullback could continue down to the 10-period MA at 1.0748, traders should watch for the momentum of the EUR/USD pullback.

Among European currencies, the euro strengthened against the yen, with the EUR/JPY pair rising from 138.236 to 139.301. The pair continued to test higher levels during today’s Asian session, breaking through yesterday’s high to reach 139.481. We will need to closely monitor price action during the European session to determine whether a triple bottom is forming on the daily chart.

Today, at 4:00 p.m. CET, the UK Employment Report, German Consumer Price Index, and Turkish Housing Sales will be released; at 7:00 p.m. CET, the GermanZEW Economic Sentiment Survey, and the Eurozone ZEW Economic Sentiment Survey at 16:00 European time; the Turkish Housing Price Index at 20:30; Canadian Housing Starts at 22:15; the Canadian Consumer Price Index and Canadian International Securities Turnover at 22:30 U.S. time; the U.S. NY Fed Manufacturing Index; and remarks by U.S. NY Fed President Williams at 29:00.Today marks the end of the U.S. holiday weekend, and with the Bank of Japan’s monetary policy announcement scheduled for tomorrow, we need to closely monitor how cross-yen pairs will move.

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?