Should we be wary of downside potential in the EUR/JPY pair, which is facing resistance at higher levels?

Should we be wary of downside potential in the EUR/JPY pair, which is facing resistance at higher levels?

28.08.2024

In yesterday’s U.S. trading session, the U.S. dollar fell slightly against the euro. The EUR/USD pair rose from 1.1149 to 1.1189. The 75-period moving average (MA) on the hourly chart provided support, triggering a rebound. On the 4-hour chart, the pair rebounded after touching the 20-period MA, and on the daily chart, the RSI has risen to 72. We will need to monitor the strength of the U.S. dollar to see if it continues to weaken during U.S. trading hours.

Despite the upward revision of Germany’s second-quarter GDP—released yesterday—from a year-on-year decline of 0.1% to a 0.0% increase, the euro fell against the yen.The EUR/JPY pair fell from 162.167 to 160.696. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the 75-period MA is acting as a resistance level, and on the daily chart, the downward trend following the pullback from the 200-period simple moving average (SMA) continues.

Today’s key economic indicators include the Australian Consumer Price Index at 10:30, the German GfK Consumer Confidence Survey at 15:00, remarks by Fed Governor Waller at 14:15, the French Consumer Confidence Index at 15:45, and Turkey’s trade balance at 16:00,17:00: Eurozone Money Supply; 20:00: U.S. MBA Mortgage Applications Index; 21:15: U.K. MPC Member Mann’s remarks; 23:30: U.S. Weekly Crude Oil Inventories; and 7:00 the following day: U.S. Atlanta Fed President Bostic’s remarks. We should remain highly vigilant regarding the downside potential for the EUR/JPY 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