Should we wait and see where the cross-yen pairs are headed following the reversal from the yen’s strength?

Should we wait and see where the cross-yen pairs are headed following the reversal from the yen’s strength?

05.12.2024

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen despite the fact that Canada’s third-quarter labor productivity, released yesterday, deteriorated from the previous reading of -0.2% to -0.4%. The CAD/JPY pair rose from 106.258 to 107.503. It broke above the 20-period moving average (MA) on the hourly chart and extended its gains to just below the 75-period MA.On the 4-hour chart, the pair is trading just below the 20-period moving average, so we will be watching to see if the Canadian dollar can maintain its momentum during U.S. trading hours.

European currencies rose against the yen as the euro gained ground following the release of the Eurozone’s October Producer Price Index (PPI) yesterday, which showed an improvement to a year-on-year decline of 3.2% from the previous month’s 3.4%. 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.

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, France’s industrial production and manufacturing production index at 16:45, and the UK’sConstruction PMI, 7:00 PM: Eurozone Retail Sales, 9:30 PM: U.S. Challenger Layoff Announcements, 10:30 PM: Canada Trade Balance, U.S. Initial Jobless Claims, U.S. Trade Balance, 12:00 AM: Canada Ivey PMI, and 12:30 AM: U.S. Weekly Crude Oil Inventories. We will carefully assess the direction of cross-yen pairs following their rebound.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed