All eyes are on whether the franc-yen pair, which has risen for five consecutive days, will continue to climb without a pullback.

All eyes are on whether the franc-yen pair, which has risen for five consecutive days, will continue to climb without a pullback

19.06.2024

In the previous day’s U.S. currency trading, the U.S. dollar weakened during U.S. trading hours after Chicago Fed President Goolsbee stated that “inflation could slow further within the year.” The USD/JPY pair fell from 158.217 to 157.630, with price action fluctuating around the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the pair continues to trade above the 10-period moving average (MA). On the daily chart, it has diverged from the 10-period MA, with the candlestick extending to the +2σ level of the Bollinger Bands.

Among European currencies, the Swiss franc emerged as the strongest. The CHF/JPY pair rose for the fifth consecutive day, climbing from 177.072 to 178.750. On the hourly chart, we are seeing a steady upward trend along the 20-day moving average, while the 4-hour chart shows the price moving along the upper band of the Bollinger Bands near the +2σ level. However, on the daily chart, the RSI has surged to 84, so we should be on the lookout for corrective price movements during European trading hours.

Today’s economic indicators include Japan’s trade balance (customs-based) at 8:50, Indonesia’s trade balance at 13:00, the UK’s Consumer Price Index (CPI), Retail Price Index (RPI), and Producer Price Index (PPI) at 15:00, South Africa’s Consumer Price Index (CPI) and the Eurozone’s current account balance at 17:00,at 6:00 PM, the Eurozone Construction Output; at 8:00 PM, South Africa’s Retail Sales and the U.S. MBA Mortgage Applications Index; at 6:30 AM the following day, Brazil’s policy rate and statement; and at 7:45 AM, New Zealand’s Real GDP. We will carefully assess whether the CHF/JPY pair, which has risen for five consecutive days, will continue to climb without a correction.