Should We Keep an Eye on the US Dollar/Yen’s Ability to Rebound After Falling to the 148-yen Level?
04.12.2024
- Remarks by U.S. Federal Reserve Chair Powell
- Remarks by Bank of England Governor Bailey
In the U.S. currency market yesterday, the U.S. dollar fell against the yen. The USD/JPY pair dropped from 150.226 to 148.682. The price fell to the -3σ level of the hourly Bollinger Bands.On the 4-hour chart, the RSI has fallen to 30, indicating oversold conditions. However, during today’s Asian trading session, the pair has recovered to the 150-yen level, so we should watch for any changes following the release of economic indicators during U.S. trading hours.
Among European currencies, the euro saw a back-and-forth movement against the yen. The EUR/JPY pair traded between 156.191 and 157.967, with price action fluctuating around the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the downtrend along the 20-period moving average continues, and on the daily chart, the RSI has fallen to 26. We will be watching price action during European trading hours to see if the euro continues to weaken against the yen.
Today’s schedule includes the Eurozone Services PMI at 18:00, remarks by Bank of England Governor Bailey at 18:00, the UK Services PMI at 18:30, the EurozoneProducer Price Index, at 9:00 PM the U.S. MBA Mortgage Applications Index, at 10:15 PM the U.S. ADP Employment Report, at 10:30 PM the Canadian Q3 Labor Productivity Index and remarks by ECB President Lagarde, at 10:45 PM remarks by U.S. Federal Reserve’s Musalem:St. Louis Fed President’s remarks at 22:30, U.S. Richmond Fed President Barkin’s remarks at 23:00, U.S. ISM Non-Manufacturing Index at 24:00, and U.S. Federal Reserve Chair Powell’s remarks at 27:40.We will be watching for a rebound in USD/JPY, which has fallen to the 148 yen level.
Author: Keisuke Sakurai
