Should we keep an eye on the upside potential of the rapidly rising EUR/JPY pair?
02.07.2024
- U.S. JOLTS Job Openings
- European Consumer Price Index
In the U.S. currency market yesterday, the U.S. dollar rose against the yen despite the U.S. June PMI (Purchasing Managers' Index) released yesterday showing a slowdown 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 (MA) 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 is evident.
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.
Author: Keisuke Sakurai
