Should we wait and see how the cross-yen pairs perform after opening with a gap up?

Should we wait and see how the cross-yen pairs perform after opening with a gap up?

06.02.2023

Last weekend, the U.S. dollar surged as the January U.S. employment report exceeded market expectations.The EUR/USD pair fell by approximately 150 pips from 1.0940 to 1.0780. The decline came after the pair broke well below the 200-period simple moving average (SMA) on the hourly chart. However, on the higher timeframe 4-hour chart, the 200-period SMA is acting as support, and the uptrend that began on November 3 of last year remains intact. With the daily RSI having shifted from its previous position near the 70 line, it will be worth watching to see if the pair enters a downtrend.

European currencies saw the pound rise against the yen after the UK non-manufacturing PMI, released last weekend, rose to 48.7 from the previous reading of 48.0. GBP/JPY climbed to 159.408, breaking above the 20-period moving average on the 4-hour chart. On the daily chart, the pair appears to be entering the final stage of a triple bottom formation, so we will be closely monitoring price movements this week.

Today, during European trading hours, German manufacturing orders will be released at 16:00, Hungarian retail sales at 16:30, remarks by a member of the Bank of England’s Monetary Policy Committee at 17:40, the UK Construction PMI and the Eurozone Investor Sentiment Index at 18:30, Eurozone retail sales at 19:00,at 8:00 PM, Canada’s Leading Economic Index; and during U.S. trading hours, at 12:00 AM, Canada’s Ivey PMI; at 1:30 AM, the U.S. 6-month Treasury bill auction; and at 2:00 AM, remarks by UK MPC member Pill. We intend to carefully monitor the movement of cross-yen pairs, which opened with a gap up.

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?