Should We Focus on the Upside Potential of the Euro, Which Is Rising Against the Yen?
05.09.2023
- U.S. Manufacturing New Orders
- Germany: Manufacturing/Services PMI
In U.S. currency trading the previous day, the U.S. dollar rose against the yen despite U.S. markets being closed for a holiday. The USD/JPY pair rose slightly from 146.016 to 146.523. During today’s Asian trading session, the pair continues to test higher levels.From a technical perspective, USD/JPY is in an uptrend along the 10-period moving average (MA) on the hourly chart, so we will wait and see cautiously to determine whether there will be significant price movement during U.S. trading hours following the long weekend.
European currencies saw the euro rise against the yen, despite yesterday’s release of Germany’s July trade balance, which came in lower than expected at 15.9 billion euros, down from 18.7 billion euros the previous month. The euro/yen pair rose from 157.330 to 158.249.During today’s Asian trading session, the pair has reached even higher levels, climbing to 158.309. On the 4-hour chart, the 20-period moving average is acting as support, and the pair is rising on a bullish candle with a lower wick; therefore, we should keep an eye on the euro’s upside potential during European trading hours.
Today, at 16:50 European time, the French Manufacturing/Services PMI will be released; at 16:55, the German Manufacturing/Services PMI; at 17:00, the Eurozone Manufacturing/Services PMI; and at 17:30, the UKmanufacturing and services PMIs, at 18:00 the Eurozone Producer Price Index, at 18:30 South Africa’s Q2 GDP, at 21:00 Brazil’s industrial production, and during U.S. trading hours at 23:00 U.S. new manufacturing orders and U.S. durable goods orders are scheduled to be released.We will cautiously monitor the upside potential for the euro, which is currently rising against the yen.
Author: Keisuke Sakurai
