All eyes are on whether the euro/yen, which has broken below its daily support line, will recover

All eyes are on whether the euro/yen pair will recover after breaking below the daily support line

24.07.2024

In yesterday's U.S. currency trading, the U.S. dollar fell against the yen. The USD/JPY pair dropped from 157.091 to 155.528, moving lower along the 20-period moving average on the hourly chart. On the 4-hour chart, the RSI has fallen just below 30, indicating oversold conditions, while the daily chart has hit a new low for the month. We will be watching price movements during U.S. trading hours to see if the U.S. dollar continues to weaken against the yen.

Despite a slight improvement in the Eurozone’s July consumer confidence index—which rose to -13.0 from -14.0 the previous month—the euro fell against the yen. The EUR/JPY pair dropped from 171.088 to 168.703, falling further after encountering resistance at the 10-period moving average on the hourly chart.On the 4-hour chart, a band walk along the -2σ line of the Bollinger Bands is evident, and on the daily chart, the price has already broken below the 75-day moving average support line.

Today, at 1:00 PM, Malaysia’s Consumer Price Index; at 2:00 PM, India’s Manufacturing/Services PMI; at 3:00 PM, Germany’s GfK Consumer Confidence Index; at 4:15 PM, France’s Manufacturing/Services PMI; at 4:30 PM, Germany’sManufacturing/Services PMI, South Africa’s Consumer Price Index at 5:00 PM, the Eurozone’s Manufacturing/Services PMI at 5:00 PM, the UK’s Manufacturing/Services PMI at 5:30 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, U.S. Wholesale Inventories at 9:30 PM,22:45 US PMI Purchasing Managers' Index, Canada BOC Policy Rate and Statement Release, 23:00 US New Home Sales, and 23:30 Canada BOC Governor Maclean Press Conference. We will be watching for signs of a recovery in the EUR/JPY pair, which has broken below its daily support line.