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 the USD/JPY pair 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 trading just below the 20-period moving average (MA) and is currently aiming higher around 144.657. We need to carefully assess whether the support provided by the 4-hour 20-period MA will hold.

European currencies saw the euro fluctuate against the yen after the June consumer price index for the eurozone, released last weekend, showed a year-over-year decline from 6.1% the previous month to 5.5%. The euro/yen pair fell to 156.708 before rebounding to 157.879, fluctuating back and forth.From a technical perspective, the EUR/JPY pair is locked in a battle around the 20-period moving average (MA) on the 4-hour chart, and the 4-hour RSI has turned downward after touching the 70 level. 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 15:30, the Turkish Manufacturing PMI at 16:00, the Swiss SVME Purchasing Managers’ Index at 16:30, the French Manufacturing PMI at 16:50, the GermanManufacturing PMI, at 17:00 the Eurozone Manufacturing PMI, at 17:30 Hong Kong Retail Sales and the UK Manufacturing PMI, at 22:45 the U.S. Manufacturing PMI, and at 23:00 U.S. Construction Spending and the U.S. ISM Manufacturing Index.We want to carefully assess whether the euro will rise against the yen.