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?

11.10.2024

In the U.S. session yesterday, the dollar weakened immediately following the release of the U.S. CPI data. The EUR/USD pair rose from 1.0907 to 1.0954 before losing momentum. On the 4-hour chart, it fell back to 1.0901. During today’s Asian session, the pair has rebounded, recovering to 1.0938. We will be watching closely to see if the EUR/USD continues to rebound during the U.S. session.

Despite the release of German retail sales data yesterday showing an increase to 2.4% year-on-year in August from 1.8% the previous month, the euro fell against the yen.The EUR/JPY pair fell from 163.610 to 162.178, a decline of approximately 1.5 yen. On the 4-hour chart, the pair has broken below the 20-day moving average, and on the daily chart, it is currently searching for direction just below the 200-day exponential moving average.

Today’s schedule includes Japan’s money supply at 1:00 PM, Malaysia’s industrial production at 1:00 PM, Germany’s consumer price index at 3:00 PM, the UK’s industrial production, manufacturing production, and trade balance at 3:00 PM, India’s industrial production and Mexico’s industrial production at 9:00 PM, Canada’s housing starts at 9:30 PM,U.S. Producer Price Index and Canadian Employment Statistics at 15:00, remarks by U.S. Chicago Fed President Goolsbee at 22:45, the U.S. University of Michigan Consumer Sentiment Index at 23:00, and remarks by U.S. Federal Reserve Governor Bowman at 02:10. 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