Unlike other yen crosses, attention is turning to the upside potential of the rising EUR/JPY pair

Unlike other yen crosses, attention may turn to the upside potential of the rising EUR/JPY pair

23.12.2024

Last weekend, the Canadian dollar fell against the yen despite the release of Canada’s October retail sales data on the 20th, which showed a rise to 0.6% from 0.4% the previous month. The CAD/JPY pair fell from 109.612 to 108.620. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, the pair retested the 200-SMA line, which it had previously breached, and on the daily chart, it reversed after touching the 200-EMA.

European currencies saw the euro/yen rise slightly while other yen crosses fell, as Germany’s November Producer Price Index (PPI), released on the 20th, improved to +0.1% year-on-year from the previous month’s -1.1%.The EUR/JPY pair traded between 162.351 and 163.642. It remained within the +2σ range of the daily Bollinger Bands. We will be watching closely to see if the euro continues to rise against the yen during European trading hours.

Today, at 2:00 PM, Singapore’s Consumer Price Index; at 4:00 PM, the UK’s Q3 GDP, UK Q3 Current Account, and Germany’s Import Price Index; at 5:00 PM, Taiwan’s Employment Statistics; at 9:00 PM, Mexico’s Trade Balance;at 10:30 PM, Canada’s GDP, Industrial Product Prices, and Raw Materials Price Index; U.S. Durable Goods Orders and the Chicago Fed National Activity Index; at 12:00 AM, the U.S. Consumer Confidence Index and New Home Sales; and at 3:00 AM, a U.S. 2-year Treasury auction. Unlike other yen crosses, we would like to focus on the upside potential of the euro/yen, which has risen.