Will the market wait and see how the USD/JPY pair moves after filling the gap?

Will the market wait and see how the USD/JPY pair moves after filling the gap?

29.10.2024

In the previous day’s trading, the U.S. dollar saw a seesaw movement against the yen. At the start of the week, the USD/JPY pair opened with a gap of just over 70 pips, briefly touching 153.853 before quickly losing momentum. It then fell to 152.400, effectively filling the gap.On the daily chart, the pair has recovered approximately 61.8% from its decline from last July’s high in the 161-yen range, so we will be watching closely to see if the US dollar loses momentum at current levels.

European currencies saw the euro and Swiss franc strengthen during U.S. trading hours. The euro/yen pair rose from 164.684 to 166.052. The pair traded above the 20-period moving average on the hourly chart. On the 4-hour chart, the RSI has risen above 70—the overbought threshold—to 72. Meanwhile, since there is room for the RSI to rise further on the daily chart, it will be worth watching whether the euro continues to rise against the yen during European trading hours.

Today’s schedule includes Japan’s employment statistics at 8:30, South Africa’s money supply at 15:00, Sweden’s real GDP and Germany’s GfK consumer confidence survey at 16:00, the UK’s consumer credit balance and money supply at 18:30, South Africa’s trade balance at 21:00,at 9:30 PM, US Wholesale Inventories; at 10:00 PM, US Housing Price Index and US S&P Case-Shiller Home Price Index; at 11:00 PM, US JOLTS Job Openings and US Conference Board Consumer Confidence Index; and at 3:00 AM, remarks by SNB Governor Schlegel are scheduled. I intend to carefully monitor the price action of USD/JPY as it fills the gap.

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