With the euro/yen rising amid a weak yen, attention is turning to its upside potential

With the euro/yen rising amid a weak yen, attention is turning to its upside potential

11.09.2023

Last weekend, the Canadian dollar emerged as the strongest currency following the release of Canada’s August employment report on the 8th. The report showed a significant improvement in employment, with the number of employed persons rising by 39,900 from a decline of 6,400 in the previous month, while the unemployment rate fell to 5.5%, below the market forecast of 5.6%. The CAD/JPY pair rose from 107.162 to 108.459.A rebound occurred upon touching the 200-period SMA on the 4-hour chart, and the pair surged upward. On the weekly chart, the uptrend continues with support from the 10-period MA, so it will be worth watching whether the Canadian dollar maintains its strength against the yen.

European currencies rose against the yen as Germany’s August CPI, released last weekend, came in at 6.1% year-on-year, matching the previous month’s figure.The euro/yen pair rebounded from 157.001 to 158.392, marking a rise of approximately 1.4 yen. While the gain was larger compared to other yen crosses, the rebound followed a break below the 200-period SMA on the 4-hour chart with a bearish candle featuring a lower wick. Therefore, it remains to be seen how long the euro’s rally against the yen will continue.

Today, at 3:00 PM, Norway’s Consumer Price Index; at 4:00 PM, Turkey’s Current Account Balance;Turkey’s employment statistics and CPI, and Turkey’s industrial production; at 5:00 PM, remarks by MPC member Pill; at 8:00 PM, South Africa’s manufacturing output; at 9:00 PM, Mexico’s industrial production; at 12:30 AM, the U.S. 6-month Treasury bill auction; and at 2:00 AM, the U.S. 3-year Treasury bond auction.We will cautiously monitor the upside potential of the euro/yen pair, which is rising amid a weak yen.