Market participants may be wary of cross-yen movements ahead of the Bank of Japan’s monetary policy decision
17.01.2023
- Williams (U.S.): Remarks by the President of the New York Fed
- Canada: Consumer Price Index
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 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-day moving average 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 be closely monitoring price action during the European session to see if a triple bottom is forming on the daily chart.
Today, at 4:00 p.m. CET, we have the UK Employment Report, the German Consumer Price Index, and Turkish Housing Sales; at 7:00 p.m. CET, the GermanZEW Economic Sentiment Survey, and the Eurozone ZEW Economic Sentiment Survey at 19:00; 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 during U.S. trading hours; 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.
Author: Keisuke Sakurai
