Should We Wait and See Which Way Cross-Yen Pairs Will Go After the Reversal from the Strong Yen?
05.12.2024
- Australia's Trade Balance
- Remarks by Nakamura, a Member of the Bank of Japan’s Policy Board
In U.S. currency trading yesterday, the Canadian dollar rose against the yen despite the fact that Canada’s third-quarter labor productivity, released yesterday, worsened from the previous reading of -0.2% to -0.4%. The CAD/JPY pair rose from 106.258 to 107.503.The price broke above the 20-period moving average (MA) on the hourly chart and extended its gains to just above the 75-period MA. On the 4-hour chart, the price is trading just below the 20-period MA, so it will be worth watching whether the Canadian dollar can maintain its momentum during U.S. trading hours.
European currencies rose, with the euro gaining against the yen after the European Union’s October Producer Price Index (PPI), released yesterday, improved to a year-over-year decline of 3.2% from the previous month’s 3.4% decline.The euro/yen pair rose from 156.985 to 158.642. On the 4-hour chart, the price has recovered to the centerline of the Bollinger Bands, just below the 20-period moving average (MA).
Today’s schedule includes Australia’s trade balance at 9:30, remarks by Bank of Japan Board Member Nakamura at 10:30, Switzerland’s unemployment rate at 15:45, Germany’s manufacturing orders at 16:00, and France’sIndustrial Production and the French Manufacturing Production Index, at 18:30 UK Construction PMI, at 19:00 Eurozone Retail Sales, at 21:30 US Challenger Layoff Forecasts, at 22:30 Canadian Trade Balance,U.S. Initial Jobless Claims, U.S. Trade Balance, at 24:00: Canada’s Ivey PMI, and at 24:30: U.S. Weekly Crude Oil Inventories. We want to carefully assess the direction of cross-yen pairs, which have rebounded and risen.
Author: Keisuke Sakurai
