Attention may turn to the upside potential of the U.S. dollar following the holiday break

Attention may turn to the upside potential of the U.S. dollar following the holiday break

27.12.2024

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen. The USD/JPY pair rose by approximately 100 pips, from 157.078 to 158.077. An uptrend was observed along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the price is making higher highs along the 10-period MA, and on the daily chart, the candlesticks have risen to the +2σ level of the Bollinger Bands.However, since the daily RSI has reached 70, we will be watching closely to see if the US dollar continues to gain ground during US trading hours.

Among European currencies, the euro was the strongest throughout the day. The EUR/USD pair rose from 1.0390 to 1.0430. It broke above the 20-period moving average on the hourly chart. Similar price action is observed on the 4-hour chart, and on the daily chart, the price has rebounded from the -3σ to the 1σ level of the Bollinger Bands. Therefore, we will be watching closely to see if the euro continues to rise during European trading hours.

Today’s economic indicators include: at 8:30 AM, Japan’s Tokyo Metropolitan Area Consumer Price Index and unemployment rate; at 8:50 AM, Japan’s industrial production and retail sales, as well as the release of key opinions from the Bank of Japan’s Monetary Policy Meeting; at 2:00 PM, Japan’s housing starts; at 10:30 PM, U.S. wholesale inventories;at 12:30 AM: U.S. weekly natural gas inventories; at 1:00 AM: Russian retail sales; at 2:30 AM: Brazilian employment figures; and at 3:00 AM: U.S. weekly crude oil inventories. I intend to carefully monitor the upside potential of the U.S. dollar, which rose following the holiday break.

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