Attention is turning to the upside potential of the euro-yen pair, which has reached levels not seen since the Lehman Shock

Attention is turning to the upside potential of the euro-yen pair, which has reached levels not seen since the Lehman Shock

23.06.2023

In the U.S. currency market yesterday, the U.S. dollar rose against the yen after the U.S. existing home sales figure for May, released yesterday, came in at 4.3 million units, exceeding the market forecast of 4.2 million.The USD/JPY pair rose by just under 170 pips, from 141.162 to 143.238. Combined with hawkish comments from Fed Chair Powell—continuing from the day before yesterday—the pair hit a new high for the year. During today’s Asian trading session, the USD/JPY has touched 143.407. We will closely monitor the market to see if this upward trend continues.

European currencies rose against the yen as the Eurozone’s June consumer confidence index, released yesterday, improved to -16.1 from the previous reading of -17.4.The EUR/JPY pair rose by approximately 130 pips from 155.595 to 156.930, reaching levels not seen since September 2008. While the RSI on the 4-hour chart has exceeded 70 and divergence is evident, the RSI on the weekly chart has not yet reached the recent high of 78, leaving some room for further movement. Therefore, it remains to be seen whether the upward momentum will continue during U.S. trading hours.

Today’s schedule includes UK retail sales at 3:00 PM, Turkey’s trade balance and economic confidence at 4:00 PM, remarks by ECB President Lagarde at 4:00 PM, France’s manufacturing and services PMI at 4:15 PM, Germany’s manufacturing and services PMI at 4:30 PM, the Eurozone’s manufacturing and services PMI at 5:00 PM, and the UK’sManufacturing/Services PMI, 6:15 PM: US – Remarks by St. Louis Fed President Bullard, 10:45 PM: US – Manufacturing/Services PMI, and 2:40 AM: US – Remarks by Cleveland Fed President Mester. We would like to focus on the upside potential for the euro/yen pair, which has reached levels not seen since the Lehman Shock.

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