Market participants are likely to keep a close eye on the direction of the U.S. dollar, which has weakened against the yen.

Market participants are likely to keep a close eye on the direction of the U.S. dollar, which has weakened against the yen

12.08.2024

Last weekend, the U.S. dollar weakened against the yen. The USD/JPY pair fell from 147.876 to 146.284. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the 20-period MA is barely holding as a support level. On the daily chart, the RSI remains below 30, so we will be watching closely to see if the U.S. dollar recovers during European trading hours.

Among European currencies, the Swiss franc fell against the yen. The CHF/JPY pair dropped from 170.489 to 169.309. The decline was capped by the +2σ line of the hourly Bollinger Bands. Although the pair is trading below the 20-period moving average on the 4-hour chart, it rebounded during today’s Asian session, and on the daily chart, an uptrend is emerging from below the 200-period simple moving average.

Today’s economic indicators include Sweden’s Producer Price Index at 1:30 p.m., Turkey’s Employment Statistics and the Czech Republic’s Consumer Price Index at 4:00 p.m., India’s Consumer Price Index and Mexico’s Consumer Confidence Index at 9:00 p.m., India’s Industrial Production at 9:00 p.m., and Russia’s trade balance at 24:30, and the U.S. 6-month Treasury bill auction at 27:00. We want to carefully assess the direction of the U.S. dollar, which has weakened against the yen.