Watch for downside potential in cross-yen pairs facing resistance

Watch for downside potential in cross-yen pairs facing resistance

07.06.2023

In yesterday’s U.S. currency trading, the U.S. dollar rose against the euro. The EUR/USD pair fell back from 1.0732 to 1.0667, erasing the gains from the day before yesterday. On the daily chart, the EUR/USD is trading just below the 200-day EMA; if it breaks below this support level, it could extend its decline toward the next support level around 1.0559. Therefore, traders should remain cautious regarding downside potential during European trading hours.

Among European currencies, the pound saw mixed trading against the yen. The GBP/JPY pair traded in a range between 172.683 and 173.7776, searching for direction; although it rose to the 20-period moving average (MA) on the hourly chart, the rally was short-lived and the pair fell back. During today’s Asian session, the pair has been trading below the 20-period MA on the hourly chart and is trending lower, so traders should watch for a continued decline during the U.S. session.

Today’s economic indicators include: Switzerland’s unemployment rate at 14:45, Germany’s industrial production and the UK’s Halifax house price index at 15:00, France’s trade balance and current account balance at 15:45, the U.S. MBA mortgage applications index at 20:00, Canada’s trade balance and Q1 labor productivity index at 21:30, and the U.S. trade balance atat 11:00 PM: Canada’s BOC policy rate and statement; at 11:30 PM: U.S. weekly crude oil inventories; at 4:00 AM: U.S. consumer credit balances; and at 7:45 AM the following day: New Zealand’s Q1 manufacturing sales. We should watch for downside potential in cross-yen pairs, which are facing resistance on the upside.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   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

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   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?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran