Should we wait and see where the euro/yen pair is headed amid the sharp depreciation of the yen?

Should we wait and see where the euro/yen pair is headed amid the sharp depreciation of the yen?

15.06.2023

In the previous session, the U.S. dollar traded in a tight range against the Australian dollar despite the FOMC announcing that it would keep the policy rate unchanged, as the terminal rate was raised to the 5.6% level.The AUD/USD pair fluctuated wildly between 0.6755 and 0.6835, briefly dipping below the 75-period moving average on the hourly chart. At yesterday’s FOMC meeting, Fed Chair Powell explicitly stated that the Fed would “do everything in its power to meet its 2% inflation target.” We will be watching closely to see if the U.S. dollar strengthens against the Oceania currencies.

In the European currency market, the euro rose against the yen ahead of today’s ECB policy rate announcement. With the foreign exchange market generally trending toward a weaker yen, the euro/yen pair rose from 150.909 to 152.875, hitting a new high for the year. Today’s rise has pushed the euro/yen pair to its highest level since September 2008. We will be closely monitoring whether this trend toward a weaker yen continues.

Today’s economic indicators include Swiss producer import prices at 3:30 PM, remarks by German Bundesbank President Nagel at 4:00 PM, Canadian housing starts at 9:15 PM, the ECB’s policy rate decision and statement at 9:15 PM, Canadian manufacturing shipments, U.S. retail sales, the U.S. New York Fed Manufacturing Index, and the U.S. Philadelphia Fed Business Outlook Index at 9:30 PM,At 21:45, there will be a press conference by ECB President Lagarde; at 22:00, Canadian existing home sales; at 22:15, U.S. industrial production and capacity utilization; at 23:30, U.S. weekly crude oil inventories; and at 24:35, remarks by Bank of England Deputy Governor Kanrif. Amid a general trend of yen weakness, I want to carefully assess the direction of the rising EUR/JPY pair.

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