All eyes are on whether the euro will rise against the yen at the start of the month

All eyes are on whether the euro will rise against the yen at the start of the month

03.07.2023

Last weekend, the U.S. dollar faced resistance against the yen and fell, despite the University of Michigan’s June Consumer Sentiment Index—released on the last Friday of the month—coming in at 64.4, up from the previous reading of 63.9.Although USD/JPY had posted seven consecutive bullish candles on the daily chart, it closed slightly lower on the final day of the month. On the 4-hour chart, the pair is positioned just below the 20-period moving average (MA) and is currently aiming higher around 144.657. We need to carefully assess whether support at the 4-hour 20-MA will hold.

The euro fluctuated against the yen after the European Union’s June consumer price index, released last weekend, showed a year-over-year decline from 6.1% in the previous month to 5.5%.The EUR/JPY pair fell to 156.708 before rebounding to 157.879, fluctuating back and forth. Technically, the EUR/JPY is locked in a battle around the 20-day moving average on the 4-hour chart, and the 4-hour RSI has turned downward after touching 70. We will need to carefully assess whether the euro will decline against the yen at the start of the week.

Today’s economic indicators include the Swiss Consumer Price Index at 3:30 PM, the Turkish Manufacturing PMI at 4:00 PM, the Swiss SVME Purchasing Managers’ Index at 4:30 PM, the French Manufacturing PMI at 4:50 PM, the German Manufacturing PMI at 4:55 PM, the Eurozone Manufacturing PMI at 5:00 PM, and Hong Kong Retail Sales at 5:30 PM,UK Manufacturing PMI at 16:30, US Manufacturing PMI at 22:45, US Construction Spending at 23:00, and the US ISM Manufacturing Index. We will carefully assess whether the euro will rise against the yen.