Concerns over further downside potential for the euro against the yen

Concerns over further downside potential for the euro against the yen

17.06.2024

Last weekend, the three major U.S. stock indices saw mixed performance, with stock prices remaining flat amid rising interest rates and higher oil prices.WTI crude oil rose to $78.90. Natural gas, on the other hand, fell 4.2% and is trading in the $2.80 range. The five major precious metals saw mixed performance, with gold standing out as a notable gainer, rising 0.5% from the previous day to around $2,323.

In the foreign exchange market, the euro fell against the yen despite the fact that the seasonally adjusted EU trade balance for April, released on the 14th, increased to €19.4 billion from €17.3 billion the previous month.The EUR/JPY pair fell from 169.795 to 167.507. It broke below the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, it has broken below the 200-period simple moving average (SMA) support line, and on the daily chart, it has touched the -3σ Bollinger Band, so we should be wary of a continued decline during European trading hours.

Today’s economic indicators include UK Rightmove house prices at 8:01, Japan’s machinery orders at 8:50, China’s new home sales prices at 10:30, China’s industrial production and retail sales at 11:00, remarks by ECB President Lagarde at 18:00, Canada’s housing starts at 21:15,21:30: Canada – International Securities Turnover; 21:30: US – New York Fed Manufacturing Index; 22:00: Canada – Existing Home Sales; 24:30: US – 6-Month Treasury Bill Auction; 25:00: US – Remarks by Williams, President of the New York Fed; 26:00: US – Remarks by Harker, President of the Philadelphia Fed.We should remain cautious about the downside potential for the euro, which has fallen 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