Keep an eye on the euro/yen pair, which is facing resistance ahead of the ECB meeting

Keep an eye on the euro/yen pair, which is facing resistance ahead of the ECB meeting

17.07.2024

In yesterday’s U.S. currency trading, the U.S. dollar strengthened immediately after the release of the U.S. June core retail sales index, which was revised upward from a 0.1% decline in the previous month to a 0.4% increase. The USD/JPY pair rose from 157.937 to 158.849.A rebound was observed upon touching the 20-period moving average (MA) on the hourly chart. However, as the pair has fallen below the 20-period MA during today’s Asian session, we should pay close attention to the USD’s price action during the European session.

European currencies saw the euro struggle to gain ground against the yen after Germany’s July ZEW Economic Sentiment Index, released yesterday, fell sharply to 41.8 from 47.5 the previous month.EUR/JPY rose from 172.030 to 172.917, extending its gains to near the 75-period moving average (MA) on the hourly chart. However, as the 75-period MA continues to cap gains during today’s Asian session, traders should pay close attention to market strength or weakness during U.S. trading hours.

Today’s schedule includes the Australian Westpac Leading Index at 9:30, the UK Consumer Price Index, UK Retail Price Index, and UK Producer Price Index at 15:00, Indonesia’s 7-day reverse repo rate at 16:20, the Eurozone Consumer Price Index at 18:00, and South Africa’s retail sales at 20:00,U.S. MBA Mortgage Applications at 9:30 PM, Canada’s International Securities Turnover and U.S. Housing Starts at 9:30 PM, remarks by U.S. Richmond Fed President Barkin at 10:00 PM, U.S. Industrial Production at 10:15 PM, U.S. Weekly Crude Oil Inventories at 11:30 PM, and the U.S. Beige Book (Federal Reserve District Economic Report) at 3:00 AM.I intend to cautiously monitor the trend of the euro/yen pair, which is facing resistance on the upside.

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