Will the market wait and see how much further the USD/JPY pair can rise after reaching 146 yen last November?
17.08.2023
- U.S. Initial Unemployment Insurance Claims
- Philadelphia Fed Business Conditions Index
In the U.S. currency market yesterday, the U.S. dollar strengthened as U.S. industrial production for July—released yesterday—rebounded to +1.0% from the previous month’s -0.5%. The USD/JPY pair reached the key 146-yen level late in the U.S. trading session yesterday, setting a new year-to-date high.From a technical perspective, the 4-hour RSI for USD/JPY has risen to 80, while on the daily chart it is just below 70. Therefore, traders should be on the lookout for corrective price movements following today’s economic data releases during U.S. trading hours.
European currencies fell as the euro weakened against the U.S. dollar after yesterday’s release of second-quarter EU GDP data, which came in at 0.6% year-over-year—in line with market expectations. The euro/dollar exchange rate fell from 1.0934 to 1.0871.It has continued to hit new lows during today’s Asian trading session, dropping to 1.0862. On the weekly chart, the pair has been in a downtrend since forming a triple top, so traders should be wary of further declines during U.S. trading hours.
Today’s schedule includes the Philippine BSP lending rate at 16:00, the Norwegian deposit rate at 17:00, Hong Kong’s employment statistics at 17:30, the Eurozone’strade balance, at 21:30 U.S. initial jobless claims, Canadian government bond trading volume, and the U.S. Philadelphia Fed Business Outlook Index, at 23:00 the U.S. Leading Economic Index, and at 23:30 U.S. weekly natural gas inventories.We will be closely monitoring the upside potential for the USD/JPY pair, which has reached 146 yen for the first time since last November.
Author: Keisuke Sakurai
