Attention is turning to whether the USD/JPY pair, which has fallen to the 148-yen level, can recover
04.12.2024
- Remarks by U.S. Federal Reserve Chair Powell
- Remarks by Bank of England Governor Bailey
In yesterday's U.S. trading session, the U.S. dollar weakened against the yen. The USD/JPY pair fell from 150.226 to 148.682. The price dropped to the -3σ level of the hourly Bollinger Bands. On the 4-hour chart, the RSI has fallen to 30, indicating oversold conditions. However, as the pair has recovered to the 150-yen level during today's Asian session, we should watch for any changes following the release of economic indicators during U.S. trading hours.
Among European currencies, the euro saw a seesawing trend against the yen. The EUR/JPY pair traded between 156.191 and 157.967. Price action fluctuated around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the downtrend along the 20-period MA continues, and on the daily chart, the RSI has fallen to 26. We will be watching price movements during European trading hours to see if the euro continues to weaken against the yen.
Today’s schedule includes the Eurozone Services PMI at 6:00 PM, remarks by Bank of England Governor Bailey at 6:00 PM, the UK Services PMI at 6:30 PM, the Eurozone Producer Price Index at 7:00 PM, the US MBA Mortgage Applications Index at 9:00 PM, the US ADP Employment Report at 10:15 PM, the Canadian Q3 Labor Productivity Index at 10:30 PM, and the EurozoneECB President Lagarde’s remarks, at 10:45 PM US time: St. Louis Fed President Musalem’s remarks, at 11:00 PM US time: Richmond Fed President Barkin’s remarks, at 12:00 AM US time: US ISM Non-Manufacturing PMI, and at 3:40 AM US time: Fed Chair Powell’s remarks.We will be watching for signs of a recovery in USD/JPY, which has fallen to the 148 yen level.
Author: Keisuke Sakurai
