All eyes are on whether cross-yen pairs, which have been trending higher, will rebound

All eyes are on whether cross-yen pairs, which have been trending higher, will rebound

06.06.2023

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen ahead of today’s housing starts report. The CAD/JPY pair dropped by just under 110 pips from this year’s high of 104.590 to 103.506. The decline halted when the price touched the 75-period moving average on the hourly chart.During today’s Asian session, the price has recovered to just below the hourly 20-MA, and on the higher 4-hour timeframe, it has rebounded with support from the 20-MA. We will closely monitor whether the yen’s strength will resume during the European session.

Among European currencies, the euro fell against the yen today ahead of the release of German manufacturing new orders data. The EUR/JPY pair dropped from 150.198 to 149.218. It has stalled, finding support at the 20-day moving average on the daily chart. On the daily chart, the pair appears to be entering a triangle consolidation pattern following its recent rise. We will need to monitor whether the EUR/JPY price rises during U.S. trading hours and assess its relative strength against other currencies before making a decision.

Today’s schedule includes German new manufacturing orders at 3:00 PM, Taiwan’s consumer price index at 5:00 PM, the UK construction PMI at 5:30 PM, Eurozone retail sales at 6:00 PM, South Africa’s real GDP at 6:30 PM, Canadian housing starts at 9:30 PM, and the Canadian Ivey PMI at 11:00 PM.Amid a general trend of yen appreciation, we will carefully assess the direction of the market to see if cross-yen pairs will recover during U.S. trading hours.