With key figures making statements, attention should be paid to the direction of the U.S. dollar, which has fallen against the yen

With key figures making statements, attention should be paid to the direction of the U.S. dollar, which has fallen against the yen

23.08.2023

In the previous day’s U.S. currency trading, the dollar faced resistance after Richmond Fed President Barkin stated, “We need to achieve the 2% inflation target to ensure the Fed’s credibility,” causing USD/JPY to fall from 146.394 to 145.499.On the hourly chart, USD/JPY has already broken below the 75-day moving average (MA) and is currently positioned between the 200-day simple moving average (SMA) and the 20-day exponential moving average (EMA). On the weekly chart, a bearish divergence has formed as the RSI is making lower highs, so we should be cautious of further downside during U.S. trading hours.

Despite the improvement in the seasonally adjusted European current account balance for June—which was released yesterday and rose from the previous reading of €9.1 billion to €35.8 billion—the euro became the weakest currency during U.S. trading hours.The euro/yen pair fell from this year’s high of 159.490 to 158.124, breaking below the 75-period moving average (MA) on the 4-hour chart. On the daily chart, it remains above the 20-period MA, so the uptrend has not yet broken down, but caution is warranted regarding price movements during European trading hours.

Today, at 4:00 PM, the Turkish Consumer Confidence Index; at 5:00 PM, the South African Consumer Price Index; at 5:00 PM, the Eurozone Manufacturing/Services PMI; at 5:30 PM, the UK Manufacturing/Services PMI; at 8:00 PM, the US MBA Mortgage Applications Index; at 9:30 PM, Canadian Retail Sales;at 10:45 PM, the U.S. Manufacturing/Services PMI; at 11:00 PM, U.S. New Home Sales; at 11:00 PM, the Eurozone Consumer Confidence Index; at 11:30 PM, U.S. Weekly Crude Oil Inventories; and at 2:00 AM, the U.S. 20-Year Treasury Auction. Amid key speeches, we will closely monitor the direction of the U.S. dollar, which has fallen against the yen.