Should we focus on the upside potential of the euro, which is rising against the yen?

Should we keep an eye on the upside potential of the euro, which is rising against the yen?

05.09.2023

In the U.S. currency market yesterday, 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, the USD/JPY is in an uptrend along the 10-period moving average on the hourly chart, so we will monitor the situation carefully to see if there will be significant price movement during U.S. trading hours following the holiday break.

Despite the fact that Germany’s July trade balance, released yesterday, came in lower than expected at €15.9 billion compared to €18.7 billion the previous month, the euro rose against the yen. The EUR/JPY pair rose from 157.330 to 158.249.During today’s Asian session, the pair has reached even higher levels, climbing to 158.309. On the 4-hour chart, the 20-day moving average is acting as support, and the pair is rising on a bullish candle with a lower wick, so we should keep an eye on the euro’s upside potential during European trading hours.

Today, during European trading hours, the French Manufacturing/Services PMI will be released at 16:50, the German Manufacturing/Services PMI at 16:55, the Eurozone Manufacturing/Services PMI at 17:00, and the UKmanufacturing and services PMIs, the Eurozone Producer Price Index at 18:00, South Africa’s Q2 GDP at 18:30, Brazil’s industrial production at 21:00, and U.S. manufacturing new orders and durable goods orders at 23:00 during U.S. trading hours. We will closely monitor the upside potential for the euro, which is currently rising against the yen.