Market participants may be wary of further downside potential in the EUR/JPY pair amid the yen’s strengthening trend

Market participants may be wary of further downside potential in the EUR/JPY pair amid the yen’s strengthening trend

04.08.2023

In the U.S. currency market yesterday, the U.S. dollar traded in a narrow range against the euro after the U.S. July Purchasing Managers' Index (PMI), released yesterday, came in at 52.0, matching the previous month's reading.The EUR/USD pair traded in a range between 1.0912 and 1.0961, showing a lack of direction. However, during today’s Asian session, a rebound was observed with support from the 20-period moving average (MA) on the hourly chart, and the hourly RSI is beginning to turn upward. Therefore, we should be cautious about whether the US dollar will weaken during the European session.

European currencies fell against the yen as the Eurozone’s June Producer Price Index (PPI), released yesterday, worsened year-on-year from -1.5% in the previous month to -3.4%.The euro/yen pair fell from 157.211 to 155.545. On the daily chart, a triple top pattern appears to be forming. We will monitor the situation closely, considering whether the euro will continue to weaken against the yen into U.S. trading hours, while also keeping an eye on today’s retail sales data.

Today’s schedule includes German manufacturing orders at 3:00 PM Asia time, Hungarian industrial production at 3:30 PM, French industrial production and the French manufacturing production index at 3:45 PM, followed by Thailand’s foreign exchange reserves at 4:30 PM Europe time, the UK construction PMI at 5:30 PM, and Eurozone retail sales at 6:00 PM.20:15 UK MPC member Pill’s remarks, 21:30 US time Canadian employment data and US employment data, and 23:00 Canadian Ivey PMI. We should remain highly vigilant regarding the downside potential for the EUR/JPY pair, which has been trending toward a stronger yen.

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