Should we be wary of the upward momentum in the euro/yen pair, which has continued to hit new highs this month?

Should we be wary of the upward momentum in the euro/yen pair, which has continued to hit new highs this month?

27.05.2024

Last weekend, the U.S. dollar became the weakest currency during U.S. trading hours after the April U.S. durable goods orders, released on Friday the 24th, fell to 0.7% from 2.6% the previous month. The EUR/USD pair rose from 1.0805 to 1.0857, breaking above the 20-period moving average on the hourly chart.Although the pair has not yet reached a new high on the 4-hour chart, it is firmly above the 20-period moving average, so we will be watching closely to see if the US dollar softens during European trading hours.

European currencies rose against the yen after Germany’s preliminary first-quarter GDP figures, released last weekend, showed no change from the previous month’s year-on-year decline of 0.2%. The euro/yen pair rose from 169.603 to 170.495, rebounding from the 75-period moving average on the hourly chart. As the pair continues its gradual upward trend along the 20-period moving average on the 4-hour chart, we will be watching to see if it can reach new highs during U.S. trading hours.

9:05 AM: Remarks by Bank of Japan Governor Ueda (Japan); 11:05 AM: Remarks by Bank of Japan Deputy Governor Uchida (Japan); 2:00 PM: Economic Sentiment Index (Japan); 3:00 PM: Labor Force Survey (Norway); 4:00 PM: Capacity Utilization Rate (Turkey), Manufacturing Confidence Index (Turkey); 5:00 PM:IFO Business Climate Index and Philippines Unemployment Rate, at 17:30 Hong Kong Imports/Exports, at 22:00 Israel Benchmark Interest Rate, and at 24:30 a U.S. 3-month Treasury bill auction. Keep an eye on the upside potential of the EUR/JPY pair, which has been hitting new highs this month.

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