Will the Weakening U.S. Dollar Rebound? All Eyes on Currency Strength and Weakness
23.07.2024
- Singapore Consumer Price Index
- European Consumer Confidence Index
In the U.S. currency market yesterday, the U.S. dollar fell against the yen. The USD/JPY pair dropped from 157.606 to 156.281, reaching the -3σ level of the hourly Bollinger Bands.On the 4-hour chart, the pair is in a downtrend along the 20-period moving average (MA), and on the daily chart, it has fallen sharply to just below the 75-period MA. We will be watching for signs of a potential reversal during European trading hours to see if the U.S. dollar continues to weaken against the yen.
Among European currencies, the pound fell against the yen. Although GBP/JPY saw a larger rebound than other yen crosses following its decline, it still fell from 203.603 to 201.895. The hourly RSI dropped to 26.On the 4-hour chart, the pair temporarily found support at the 200 SMA, but it has since broken below the 200 SMA during today’s Asian session. On the daily chart, the price has already moved below the 20 MA, so traders should be on guard for further downside during the U.S. session.
Today’s economic indicators include the Singapore Consumer Price Index at 14:00, Japan’s Machine Tool Orders at 15:00, Turkey’s Consumer Confidence Index at 16:00, Taiwan’s Industrial Production at 17:00, and the announcement of the Turkish Central Bank’s (TCMB) policy rate and statement at 20:00,at 21:00, the Hungarian Central Bank’s policy rate and statement; at 23:00, the Eurozone Consumer Confidence Index, the U.S. Richmond Fed Manufacturing Index, and U.S. Existing Home Sales; and at 26:00, a U.S. 2-year Treasury auction.We will be closely monitoring currency strength and weakness to see if the weakening U.S. dollar will recover.
Author: Keisuke Sakurai
