All eyes are on whether the U.S. dollar, which weakened toward the end of the month, will recover

All eyes are on whether the U.S. dollar, which weakened toward the end of the month, will recover

02.12.2024

Last weekend, the U.S. dollar weakened against the yen. The USD/JPY pair fell from 151.527, breaking below the key 150-yen level to reach 149.471. The hourly RSI dropped to 32. On the 4-hour chart, the downtrend along the 10-day moving average continued throughout last week, while on the daily chart, the price closed well below the 200-day moving average support line.However, the pair has shown signs of a rebound in early Asian trading today.

Among European currencies, the pound fell against the yen. The GBP/JPY pair dropped from 192.261 to 190.134. It broke below the -3σ line on the hourly Bollinger Bands. On the 4-hour chart, the pair is trending gently lower along the 20-period moving average (MA), while on the daily chart, the RSI has fallen to 33. On the weekly chart, however, the pair has not yet approached the lows seen in September of this year and remains above the support line provided by the 75-period MA.

Today’s schedule includes Japan’s capital expenditure data at 8:50, Indonesia’s Manufacturing PMI at 9:30, Australia’s housing construction permits at 9:30, China’s Caixin Manufacturing PMI at 10:45, Switzerland’s retail sales at 16:30, Germany’s Manufacturing PMI at 17:50, Germany’s Manufacturing PMI at 17:55, and the Eurozone’s Manufacturing PMI at 18:00,6:30 PM UK Manufacturing PMI, 7:00 PM Eurozone Employment Statistics, 11:45 PM US PMI Purchasing Managers’ Index, 12:00 AM US Construction Spending, US ISM Manufacturing Index, and 5:00 AM remarks by Fed Governor Waller. We will carefully assess the direction of the market to see if the US dollar, which weakened at the end of the month, will recover.