Should we focus on the upside potential of the rapidly rising EUR/JPY pair?

Should we focus on the upside potential of the rapidly rising EUR/JPY pair?

02.07.2024

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen despite the U.S. June PMI Purchasing Managers’ Index, released yesterday, slowing to 51.6 from 51.7 the previous month. The USD/JPY pair rose from 160.709 to 161.725, with the rise tracking the 20-period moving average on the hourly chart.On the 4-hour chart, the 10-period moving average is acting as support, while on the daily chart, a band walk along the +2σ line of the Bollinger Bands has been confirmed.

Among European currencies, the euro rose against the yen. The EUR/JPY pair climbed from 172.582 to 173.674. The price rise was observed along the +2σ line of the hourly Bollinger Bands. A similar price movement is evident on the 4-hour chart, while on the daily chart, the RSI has exceeded the overbought threshold of 70 and is currently hovering around 74. We will be watching price movements during European trading hours to see if the euro continues to rise against the yen.

Today’s economic indicators include South Korea’s Consumer Price Index at 8:00, Japan’s Monetary Base at 8:50, the release of the RBA minutes at 10:30, Hong Kong’s Retail Sales at 17:30,at 6:00 PM, the Eurozone CPI and Eurozone Employment Statistics; at 10:00 PM, Singapore’s Manufacturing PMI; at 10:30 PM, remarks by ECB President Lagarde and Fed Chair Powell; and at 11:00 PM, U.S. JOLTS Job Openings. We intend to cautiously monitor the upside potential of the Euro/Yen pair, which has been rising sharply.

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