Should we be wary of the downside potential for the euro/yen pair, which is facing resistance on the upside?

Should we be wary of the downside potential for the euro/yen pair, which is facing resistance on the upside?

11.10.2024

In yesterday’s U.S. trading session, the U.S. 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 U.S. trading hours.

Despite the release of German August retail sales data yesterday showing a year-on-year increase of 2.4%—up from 1.8% the previous month—the euro fell against the yen.The euro/yen 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 (MA), and on the daily chart, it is currently searching for direction just below the 200-day exponential moving average (EMA).

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, and Canada’s housing starts at 9:30 PM,US Producer Price Index, and Canadian Employment Statistics; at 22:45, remarks by US Federal Reserve Governor Goolsbee (President of the Chicago Fed); at 23:00, the US University of Michigan Consumer Sentiment Index; and at 02:10, remarks by US Federal Reserve Governor Bowman. We should remain highly vigilant regarding the downside potential for the EUR/JPY pair, which is facing resistance on the upside.