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 euro rose against the dollar from 1.0587 to 1.0638.It rebounded, finding support at the 75-day moving average (MA) on the daily chart. From a technical perspective, the EUR/USD pair is rebounding along the 20-period moving average (MA) on the 4-hour chart and has been forming higher lows, so we will be watching price action during European trading hours closely.

European currencies fell against the yen after the Eurozone’s January Producer Price Index, released last Friday, came in at 15.0% year-over-year—below 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 declines. However, during today’s Asian trading session, the pair has found support at the 200-period simple moving average (SMA) on the hourly chart, halting its decline; therefore, we will be closely monitoring its potential for a rebound during U.S. trading hours.

Today, at 16:00, Sweden’s current account balance for October–December; at 16:30, Switzerland’s Consumer Price Index and Hungary’s retail sales; at 18:30, the UK’s Construction PMI; at 19:00, the Eurozone’s retail sales;at 8:00 PM, Canada’s Leading Economic Index; at 9:00 PM, Mexico’s Total Fixed Capital Formation; and at midnight, Canada’s Ivey Purchasing Managers’ Index and the U.S. Manufacturing Orders Index. We will be watching closely to see if cross-yen pairs, which have been correcting lower, will show any signs of a rebound.