Should we be wary of the rise in the USD/JPY exchange rate?
10.07.2024
- U.S. MBA Mortgage Applications Index
- China Consumer Price Index
In the U.S. session yesterday, the U.S. dollar strengthened against the yen. The USD/JPY pair rose from 160.728 to 161.513. The rise followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 75-period MA is acting as a support level, while on the daily chart, the price has rebounded after touching the 10-period MA. Since the weekly chart has shown four consecutive bullish candles, we should keep an eye on price gains during U.S. trading hours.
Among European currencies, the pound weakened against the U.S. dollar. The GBP/USD pair fell from 1.2824 to 1.2776, breaking below the 20-period moving average (MA) on the hourly chart. It has similarly broken below the 20-period MA on the 4-hour chart, and on the daily chart, it has pulled back from the +2σ line of the Bollinger Bands. We will be watching price movements during European trading hours to see if the pound continues to weaken against the U.S. dollar.
Today’s economic indicators include Japan’s domestic corporate goods price index at 8:50, China’s consumer price index at 10:30, the RBNZ policy rate and statement at 11:00, Turkey’s employment statistics and industrial production at 16:00, the U.S. MBA mortgage applications index at 20:00, U.S. wholesale inventories at 23:00,remarks by Nagel, President of the German Bundesbank; testimony by Fed Chair Powell before Congress; U.S. weekly crude oil inventories at 11:30 PM; remarks by a member of the Bank of England’s MPC at 12:30 AM; a U.S. 10-year Treasury auction at 2:00 AM; and remarks by Fed Governor Bowman at 3:30 AM. Keep an eye on the upward momentum in the USD/JPY exchange rate.
Author: Keisuke Sakurai
