Should investors be wary of shifts in currency strength in cross-yen pairs, given the recent shift from yen weakness to a trend of yen buying?

Should investors be wary of shifts in currency strength in cross-yen pairs, given the recent shift from yen weakness to a trend of yen buying?

31.08.2023

In yesterday’s U.S. currency trading, the U.S. dollar fell against the yen despite the fact that the U.S. existing home sales figure for July, released yesterday, improved to 0.9% month-over-month from 0.3% the previous month. The USD/JPY pair fell from 146.525 to 146.534, breaking below the 200-period simple moving average (SMA) on the hourly chart.With prices testing lower levels during today’s Asian session as well, we will be watching carefully to see if the U.S. dollar remains weak against the yen ahead of tomorrow’s U.S. employment report.

Among European currencies, the pound emerged as the strongest currency during U.S. trading hours and rose against the yen. GBP/JPY climbed from 184.319 to 186.050, coming within striking distance of this month’s high in the mid-186 yen range. However, during today’s Asian trading session, the pair has pulled back and has already fallen to around 185.400.On the 4-hour chart, the pair has risen to the +3σ level of the Bollinger Bands, so we will be closely monitoring for a pullback in the near term.

Today, at 3:30 PM, Swiss retail sales; at 3:45 PM, French CPI and PPI; at 4:55 PM, German employment data; at 6:00 PM, Eurozone employment data and HICP;at 8:30 PM: U.S. Challenger Layoffs; at 9:30 PM: U.S. Initial Jobless Claims, Canada’s Current Account, U.S. Personal Income, and U.S. PCE Deflator; at 10:00 PM: Remarks by Collins, President of the Boston Fed; and at 10:45 PM: U.S. Chicago PMI.We should remain vigilant regarding currency strength in cross-yen pairs, as the trend has shifted from yen weakness to yen buying.

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