Caution Advised on the Trend of Cross-Yen Pairs, Which Are Facing Resistance at Higher Levels

Caution Advised on the Trend of Cross-Yen Pairs, Which Are Facing Resistance at Higher Levels

28.03.2024

In the U.S. currency market yesterday, 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 above the 20-period moving average (MA) on the hourly chart to below it. 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 euro/yen 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 trading session, the 200-period SMA continues to act as a resistance level, so traders should remain cautious of a potential continued decline during European trading hours.

Today’s schedule includes Japan’s foreign and domestic securities investment data at 8:50, New Zealand’sANZ Business Confidence, at 9:30 AM: NZ Retail Sales, at 1:00 PM: Thailand Manufacturing Production Index, at 4:00 PM: Germany Retail Sales and UK GDP, at 5:00 PM: Switzerland KOF Leading Index, and at 5:55 PM: GermanyEmployment Statistics, at 18:00: Eurozone Money Supply, at 21:30: U.S. Initial Jobless Claims, Canada GDP, and U.S. GDP, at 22:45: U.S. Chicago PMI, and at 23:00: U.S. University of Michigan Consumer Sentiment Index.I intend to carefully monitor the movements of cross-yen pairs, which are facing resistance on the upside.