Will the euro, which has risen against the yen, pull back? Keep an eye on the direction of the market.

Will the euro, which has risen against the yen, pull back? Keep an eye on the direction of the market.

31.01.2024

The U.S. dollar weakened against the euro yesterday ahead of today’s FOMC meeting. The EUR/USD pair rose from 1.0811 to 1.0855. Price action remained directionless just below the 200-day simple moving average (SMA) on the daily chart. On the weekly chart, the pair is positioned just below the 20-day moving average (MA), and the RSI is in a downtrend near the 70 level; therefore, we should remain vigilant regarding whether the U.S. dollar will regain strength during U.S. trading hours.

European currencies saw the euro rise slightly against the yen after yesterday’s release of the Eurozone’s fourth-quarter real GDP, which came in at 0.0% quarter-on-quarter, up from the previous quarter’s -0.1%.The EUR/JPY pair rose from 159.216 to 160.330 but pulled back after touching the 200-period EMA on the hourly chart. Technically, the EUR/JPY pair continues to trend gently lower along the 20-period MA on the 4-hour chart, so traders should watch for potential pullbacks during European trading hours.

Today’s schedule includes the UK Nationwide House Price Index, Germany’s Import Price Index, Germany’s Retail Sales, and Turkey’s Trade Balance at 4:00 PM; Switzerland’s Retail Sales at 4:30 PM; France’s Consumer Price Index and Producer Price Index at 4:45 PM; the U.S. MBA Mortgage Applications Index at 9:00 PM; and Germany’sCPI, at 10:15 PM the US ADP National Employment Report, at 10:30 PM Canadian GDP, at 11:45 PM the US Chicago PMI, at 12:30 AM US weekly crude oil inventories, at 4:00 AM the US FOMC policy rate decision and statement, and at 4:30 AM a press conference by US Federal Reserve Chair Powell.We should watch for any reversal in the euro, which has been rising against the yen.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   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

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   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?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed