Will the trend of selling the U.S. dollar and the yen shift? Caution is advised.
29.08.2023
- German GfK Consumer Confidence Survey
- U.S. JOLTS Job Openings
In the previous day’s U.S. currency trading, a trend of selling both the yen and the U.S. dollar emerged, causing the dollar to fluctuate against the yen. The USD/JPY pair traded in a narrow range of just under 50 pips between 146.269 and 146.743, lacking a clear direction. On the hourly chart, price action has straddled the 20-period moving average (MA), while on the 4-hour chart, it is trading above the 10-period MA.On the daily chart, the RSI has not yet reached 70, leaving some room for movement, so we should remain cautious regarding the dollar’s price action during U.S. trading hours.
Among European currencies, the euro rose slightly against the yen. The euro/yen pair climbed from 158.015 to 158.570. On the daily chart, the candlestick that had fallen below the 20-day moving average (MA) has recovered to trade above it. On the 4-hour chart, the price appears to be moving toward the upper boundary of the uptrend line, so we will be watching for further gains in the euro during European trading hours.
Today, at 3:00 PM, the German GfK Consumer Confidence Survey; at 3:45 PM, the French Consumer Confidence Index; at 4:00 PM, Turkey’s Trade Balance; at 9:00 PM, Hungary’s policy rate and statement, and Mexico’s Q2 GDP;the U.S. S&P/Case-Shiller Home Price Index at 10:00 PM, U.S. JOLTS Job Openings and Labor Turnover Survey at 11:00 PM, the U.S. Conference Board Consumer Confidence Index at 11:00 PM, a U.S. 7-year Treasury auction at 2:00 AM, and remarks by U.S. Federal Reserve Vice Chair Bar at 4:00 AM.I want to carefully monitor price movements to see if the currency strength dynamics—which have favored selling the US dollar and the yen—will shift.
Author: Keisuke Sakurai
