Should we keep a close eye on the direction of the EUR/JPY pair, which has reversed course from an uptrend to a downtrend?

Should we keep a close eye on the direction of the EUR/JPY pair, which has reversed course from an uptrend to a downtrend?

19.12.2024

Despite the FOMC cutting the policy rate by 0.25% to 4.25–4.50% the previous day, the U.S. dollar rose against other currencies as the pace of rate cuts next year slowed.The EUR/USD pair fell from 1.0511 to 1.0346. The hourly RSI dropped to 16. On the daily chart, the pair briefly approached last month’s low for the year, but during today’s Asian session, it rebounded slightly, recovering to 1.0380.

European currencies weakened against the yen as the US dollar and the yen strengthened. The euro/yen pair fell from 161.534 to 159.812, temporarily breaking below the support line formed by the 200-period simple moving average (SMA) on the hourly chart. On the weekly chart, the 20-period moving average (MA) acted as a resistance level, triggering a pullback. We will need to monitor price movements during US trading hours to see if the euro continues to decline against the yen.

Today’s schedule includes a press conference by Bank of Japan Governor Ueda at 3:30 p.m., the GfK Consumer Confidence Index and Swiss trade balance at 4:00 p.m., and at 9:00 p.m. the UK’sthe Bank of England Governor’s announcement of the policy rate and statement, at 10:30 PM U.S. time: U.S. initial jobless claims, U.S. third-quarter GDP, and the U.S. Philadelphia Fed Business Outlook Index; at 12:00 AM U.S. time: the U.S. Leading Economic Index and U.S. existing home sales; at 12:30 AM U.S. time: U.S. weekly crude oil inventories; and at 1:00 AM U.S. time: the U.S. Kansas City Fed Manufacturing Activity Index.We will be closely monitoring the direction of the EUR/JPY pair, which has reversed from gains to losses.

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