Unlike other yen crosses, attention may be focused on the upside potential of the rising EUR/JPY pair

Unlike other yen crosses, attention may be focused on the upside potential of the rising EUR/JPY pair

23.12.2024

In the U.S. currency markets last weekend, the Canadian dollar fell against the yen despite the release on the 20th of Canada’s October retail sales figures, which rose 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 price retested the 200-period simple moving average (SMA) line, which it had previously breached, and on the daily chart, it rebounded after touching the 200-period exponential moving average (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-over-year from the previous month’s -1.1%.The EUR/JPY pair traded between 162.351 and 163.642, moving within the +2σ zone 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 14:00, Singapore’s Consumer Price Index; at 16:00, the UK’s Q3 GDP, UK Q3 Current Account, and Germany’s Import Price Index; at 17:00, Taiwan’s Employment Statistics; at 21:00, Mexico’s Trade Balance; and at 22:30, Canada’sGDP, Canada’s industrial product prices, Canada’s raw material price index, U.S. durable goods orders, the U.S. Chicago Fed National Activity Index, the U.S. consumer confidence index and new home sales at 24:00, and a U.S. 2-year Treasury auction at 27:00.Unlike other yen crosses, we’ll be watching to see if the euro/yen, which has risen, can continue its upward momentum.