Will the Market Wait and See How the USD/JPY Moves After the Gap Was Filled?
29.10.2024
- U.S. Wholesale Inventories
- UK Consumer Credit Balances
In U.S. currency trading the previous day, 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 to the upside and, although it briefly touched 153.853, it quickly lost 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 U.S. dollar loses momentum at current levels.
Among European currencies, the euro and the Swiss franc both strengthened during U.S. trading hours. 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 exceeded 70—the overbought threshold—and risen to 72. Meanwhile, on the daily chart, the RSI has some room to run, so 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 U.K.’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, the U.S. Housing Price Index and the U.S. S&P Case-Shiller Home Price Index; at 11:00 PM, the U.S. JOLTS Job Openings and the 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 the USD/JPY pair as it fills the gap.
Author: Keisuke Sakurai
