All eyes are on whether the cross-yen pairs, which have been in a corrective downtrend, will show any signs of a rebound.

All eyes are on whether the cross-yen pairs, which have been in a corrective downtrend, will show any signs of a rebound.

06.03.2023

Last weekend, the U.S. dollar fell against both the yen and the euro, despite economic indicators released during U.S. trading hours exceeding market expectations. The EUR/USD pair rose from 1.0587 to 1.0638, rebounding as it found support at the 75-day moving average on the daily chart. From a technical perspective, the EUR/USD pair has rebounded along the 20-period moving average on the 4-hour chart and is forming higher lows, so we will be watching price movements during European trading hours.

European currencies fell against the yen after the Eurozone’s January Producer Price Index, released last Friday, came in at 15.0% year-on-year—lower than both the previous month’s figure and market expectations.The euro/yen pair fell from 145.041 to 144.292, marking its second consecutive day of decline. However, during today’s Asian trading session, the 200-period simple moving average (SMA) has acted as support, halting the decline, so we will be watching closely for a potential rebound during U.S. trading hours.

Today, at 4:00 PM, Sweden’s current account balance for October–December will be released; at 4:30 PM, Switzerland’s consumer price index and Hungary’s retail sales figures will be released;at 6:30 PM, the UK Construction PMI; at 7:00 PM, Eurozone Retail Sales; at 8:00 PM, the Canadian Leading Economic Index; at 9:00 PM, Mexico’s Total Fixed Capital Formation; and at midnight, the Canadian Ivey PMI and the US Manufacturing Orders Index. We will be watching closely to see if the cross-yen pairs, which have been in a corrective downtrend, will show any signs of a rebound.