All eyes are on whether the euro/yen pair, which has fallen by 3 yen, will continue to slide

All eyes are on whether the euro/yen pair, which has fallen by 3 yen, will continue to slide

25.07.2024

In yesterday’s U.S. currency trading, the U.S. dollar fell against the yen after the U.S. July PMI (Purchasing Managers’ Index) for the manufacturing sector dropped sharply from 51.6 to 49.5. The USD/JPY pair fell from 155.986 to 153.130, declining as it encountered resistance at the 10-period moving average on the hourly chart.On the 4-hour chart, the RSI has already fallen below the oversold threshold of 30, dropping to 22. The daily chart shows a similar level.

European currencies fell against the yen after yesterday’s release of Germany’s July Manufacturing and Services PMI showed both sectors coming in below their previous readings. The EUR/JPY pair dropped 300 pips from 169.225 to 166.151, moving along the -2σ line of the hourly Bollinger Bands. On the 4-hour chart, the pair is trading below all moving averages.On the daily chart, we will be watching closely to see if the 200-day SMA in the 163 yen range acts as support.

Today, at 8:50 AM, Japan’s Business Services Price Index; at 3:45 PM, France’s Business Climate Survey; at 4:00 PM, Turkey’s Capacity Utilization Rate; at 5:00 PM, Germany’s IFO Business Climate Index and Eurozone Money Supply; at 5:30 PM, Hong Kong’s Trade Balance; at 6:30 PM, South Africa’s Producer Price Index;at 8:00 PM, the Turkish Central Bank’s policy rate and statement, along with remarks by German Bundesbank President Nagel; at 9:00 PM, Brazil’s Broad Consumer Price Index; at 9:30 PM, U.S. Initial Jobless Claims, U.S. Real GDP, and U.S. Durable Goods Orders; and at midnight, remarks by ECB President Lagarde.We will be watching to see if the euro/yen pair, which has fallen by 3 yen, will extend its decline.