Keep an eye on the upside potential of the rising cross-yen pairs
12.03.2024
- Remarks by a Member of the Bank of England’s Monetary Policy Committee
- Turkey: Industrial Production
In the previous day’s U.S. currency trading, both yen-buying and dollar-buying trends were observed, resulting in a stalemate for the dollar against the yen. While other yen crosses fell, USD/JPY traded sideways in the upper 146-yen range.Entering today’s Asian session, USD/JPY rebounded and rose, with the price climbing to 147.560. However, since USD/JPY remains below the 75-period moving average on the hourly chart, we will be watching closely to see if the release of U.S. economic indicators during the U.S. session will shift the market’s direction.
Among European currencies, the Swiss franc rose against the yen. The CHF/JPY pair climbed from 167.066 to 168.258, reaching just below the 20-period moving average (MA) on the 4-hour chart. On the higher-timeframe daily chart, although the pair broke below the 75-period MA, it halted its decline without touching the 200-period simple moving average (SMA) and has since entered a rebound phase. We will need to assess carefully whether the Swiss franc will continue to strengthen against the yen during European trading hours.
Today’s economic indicators include Japan’s Domestic Corporate Goods Price Index at 8:50, Australia’s NAB Business Confidence Index at 9:30, the UK’s unemployment rate, Germany’s Consumer Price Index, Turkey’s Industrial Production, and Turkey’s Current Account Balance at 16:00,the US NFIB Small Business Optimism Index at 7:00 PM, remarks by a member of the Bank of England’s Monetary Policy Committee at 8:00 PM, the US Consumer Price Index at 9:30 PM, the US 10-year Treasury auction at 2:00 AM, and the US budget balance at 3:00 AM. We will carefully assess the upside potential for the rising cross-yen pairs.
Author: Keisuke Sakurai
