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 Jobless Claims
- Philadelphia Fed Business Outlook Index
In yesterday’s U.S. currency trading, 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 the daily RSI is just below 70. Therefore, we should be on the lookout for corrective price movements following today’s U.S. economic data releases.
European currencies fell against the U.S. dollar after yesterday’s release of the Eurozone’s second-quarter GDP, which came in at 0.6% year-on-year, matching market expectations. The euro fell from 1.0934 to 1.0871 against the dollar. 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 caution is warranted regarding further declines during U.S. trading hours.
Today’s schedule includes the Philippine BSP lending rate at 4:00 PM, the Norwegian deposit rate at 5:00 PM, Hong Kong employment statistics at 5:30 PM, the Eurozonetrade balance at 5:00 PM, U.S. initial jobless claims and Canadian government bond turnover at 9:30 PM, the U.S. Philadelphia Fed Business Outlook Index at 11:00 PM, the U.S. Leading Economic Index at 11:30 PM, and U.S. weekly natural gas inventories at 11:30 PM. We will be closely monitoring the upside potential for USD/JPY, which has reached 146 yen for the first time since last November.
Author: Keisuke Sakurai
