It remains to be seen whether the rebounding USD/JPY pair will maintain its momentum

It remains to be seen whether the rebounding USD/JPY pair will maintain its momentum

17.09.2024

In the U.S. currency market yesterday, the USD/JPY pair stopped its decline following the release of the September New York Fed Manufacturing Index, which showed a significant improvement from the previous month’s -4.7% to +11.5%. Although the USD/JPY had been falling for four consecutive days, it rebounded at 139.578.Price action crossed the 20-period moving average on the hourly chart. On the 4-hour chart, prices rebounded from the -2σ Bollinger Band toward the centerline, and similar price action was observed on the daily chart.

European currencies rose as the euro strengthened against the U.S. dollar following yesterday’s release of the EU’s July trade balance, which fell to €15.5 billion on a seasonally adjusted basis from €17.5 billion the previous month. The EUR/USD pair rose from 1.1074 to 1.1137, forming an uptrend along the +2σ line of the hourly Bollinger Bands. With a strong bullish candle appearing on the daily chart, we will be watching for a continued upward trend during European trading hours.

Today’s schedule includes Indonesia’s trade balance at 1:00 PM, Japan’s Tertiary Industry Activity Index at 1:30 PM, Germany’s ZEW Economic Sentiment Index and the Eurozone’s ZEW Economic Sentiment Index at 6:00 PM, Canada’s housing starts at 9:15 PM, U.S. retail sales at 9:30 PM,Canada’s Consumer Price Index at 13:30, U.S. Industrial Production at 22:15, U.S. Business Inventories and the NAHB Housing Market Index at 23:00, remarks by Logan, President of the Dallas Fed, and a U.S. 20-year Treasury auction at 02:00. We will carefully assess whether the rebounding USD/JPY pair can maintain its momentum.