Caution Advised Regarding the Performance of Cross-Yen Pairs, Which Are Struggling to Gain Ground

Caution Advised Amid Weak Upward Momentum in Cross-Yen Pairs

28.03.2024

In yesterday’s U.S. currency trading, the U.S. dollar fell against the yen despite the fact that the U.S. MBA Mortgage Applications Index, released yesterday, improved to -0.7% from -1.6% the previous week. The USD/JPY pair fell from 151.972 to 151.026.The price rebounded from the upper to the lower end of the 20-period moving average on the hourly chart. As USD/JPY has been trading sideways during today’s Asian session, we will be watching closely to see if price action picks up during the European session.

European currencies saw the euro fall against the yen after yesterday’s release of the March Eurozone Consumer Confidence Index, which remained unchanged from the previous month’s reading of -14.9. The EUR/JPY pair fell by approximately 90 pips from 164.420 to 163.428, dropping below the 200-period simple moving average (SMA) on the hourly chart.During today’s Asian session, the 200-period SMA is acting as a resistance level, so we should remain cautious of a continued decline during the European session.

Today’s schedule includes Japan’s foreign and domestic securities investment at 8:50, New Zealand’s ANZ Business Confidence at 9:00, Australia’s retail sales at 9:30, Thailand’s manufacturing production index at 13:00, Germany’s retail sales and the UK’s GDP at 16:00, Switzerland’s KOF Leading Index at 17:00, and Germany’sEmployment Statistics, at 6:00 PM: Eurozone Money Supply, at 9:30 PM: US Initial Jobless Claims, Canada GDP, and US GDP, at 10:45 PM: US Chicago PMI, and at 11:00 PM: US University of Michigan Consumer Sentiment Index. I intend to carefully monitor the movements of cross-yen pairs, which are facing resistance on the upside.