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 climbed 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 closely monitoring whether the US dollar continues to gain ground during US trading hours.

Among European currencies, the euro was the strongest performer 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. 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: US Weekly Natural Gas Inventories; at 1:00 AM: Russia Retail Sales; at 2:30 AM: Brazil Employment Figures; and at 3:00 AM: US Weekly Crude Oil Inventories. We intend to carefully monitor the upside potential of the US dollar, which rose following the holiday break.