Will the market wait and see how the USD/JPY pair moves after filling the gap?
29.10.2024
- Rice · Wholesale Inventory
- UK Consumer Credit Balances
In the previous day's U.S. currency trading, the dollar saw a seesaw battle against the yen. At the start of the week, the USD/JPY 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.
During European trading hours, the euro and the Swiss franc both strengthened against the US dollar. The euro/yen pair rose from 164.684 to 166.052, trading 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, on the daily chart, the RSI still has room to rise, so it will be worth watching whether the euro continues to gain 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, U.S. Wholesale Inventories; at 10:00 PM, U.S. Housing Price Index and U.S. S&P Case-Shiller Home Price Index; at 11:00 PM, U.S. JOLTS Job Openings and U.S. Conference Board Consumer Confidence Index; and at 3:00 AM, remarks by SNB Governor Schlegel of Switzerland. I intend to carefully monitor the price action of USD/JPY as it fills the gap.
Author: Keisuke Sakurai
