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 U.S. currency trading the previous day, the U.S. dollar weakened during U.S. trading hours after Chicago Fed President Goolsbee stated, “Inflation could slow further by the end of 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), while on the daily chart, it has diverged from the 10-period MA, with candlesticks extending up to the +2σ level of the Bollinger Bands.

Among European currencies, the Swiss franc emerged as the strongest. The franc-yen pair rose for the fifth consecutive day, climbing from 177.072 to 178.750.On the hourly chart, a steady rise along the 20-period moving average (MA) is evident, while the 4-hour chart shows the price moving along the upper band near the +2σ level of the Bollinger Bands. On the other hand, the RSI on the daily chart has surged to 84, so traders should be wary of a corrective move 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, Retail Price Index, and Producer Price Index at 15:00, South Africa’s Consumer Price Index and the Eurozone’s current account balance at 17:00,at 6:00 p.m., the Eurozone Construction Output; at 8:00 p.m., South Africa’s Retail Sales and the U.S. MBA Mortgage Applications Index; at 6:30 a.m. the following day, Brazil’s policy rate and statement; and at 7:45 a.m., New Zealand’s Real GDP.We need to carefully assess whether the CHF/JPY pair, which has risen for five consecutive days, will continue to climb without a correction.