Will the Japanese yen, which is facing resistance on the upside, extend its decline? Stay tuned.

Will the Japanese yen, which is facing resistance on the upside, extend its decline? Stay tuned.

18.06.2024

Yesterday, the three major stock indices in the U.S. market all rose, resulting in a “triple rally” of higher stock prices, higher interest rates, and higher crude oil prices. WTI crude oil briefly touched the key $80 level and is currently trading around $79.8.Natural gas, on the other hand, fell 0.8%, dropping to the $2.79 range. Of the five major precious metals, all but platinum declined; platinum was the sole exception, rising 1.3% from the previous day to around $978.

In the foreign exchange market, the Japanese yen became the weakest currency toward the end of the U.S. trading session. The GBP/JPY pair rose from 199.068 to 200.425, breaking out from below the 200-period SMA on the hourly chart to trade above it.On the 4-hour chart, the pair has rebounded from the 75-MA line, and the 4-hour RSI has recovered from 44 to 53. Although the Bollinger Bands are contracting on the daily chart, the pair has been making higher lows recently, so traders should be wary of the yen’s vulnerability during European trading hours.

Today’s economic indicators include the RBA policy rate and statement at 1:30 p.m., remarks by RBA Governor Block at 2:30 p.m., and at 6:00 p.m., the GermanZEW Economic Sentiment Index, Eurozone ZEW Economic Sentiment Index, and Eurozone Consumer Price Index; at 21:00, the Hungarian Central Bank’s policy rate and statement; at 21:30, U.S. retail sales; at 22:15, U.S.Industrial Production, and U.S. Capacity Utilization; at 23:00, U.S. Business Inventories and remarks by U.S. Richmond Fed President Barkin; at 24:40, remarks by U.S. Boston Fed President Collins; and at 26:00, remarks by U.S. Federal Reserve Governor Kugler are scheduled.I’d like to wait and see whether the Japanese yen, which is facing resistance on the upside, will extend its decline.