Attention Turns to Upside Potential for the U.S. Dollar After the Holiday Break

Attention Turns to Upside Potential for the U.S. Dollar After the Holiday Break

27.12.2024

In the U.S. currency market yesterday, 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, prices are making higher highs along the 10-period moving average, and on the daily chart, candlesticks have risen to the +2σ level of the Bollinger Bands. Furthermore, since the daily RSI has reached 70, we will be closely monitoring whether the U.S. dollar continues to gain ground during U.S. trading hours.

Among European currencies, the euro was the strongest throughout the day. The euro/dollar pair rose from 1.0390 to 1.0430. It broke out from below the 20-period moving average on the hourly chart to trade above it.Similar price action is observed on the 4-hour chart as on the hourly chart, and since the price has rebounded from the -3σ to the 1σ level on the daily chart, we will be closely monitoring whether the euro continues to rise during European trading hours.

Today’s economic indicators include: at 8:30, Japan’s Consumer Price Index for Tokyo’s 23 Wards and Japan’s Unemployment Rate; at 8:50, Japan’s Industrial Production, Japan’s Retail Sales, and the release of key opinions from the Bank of Japan’s Monetary Policy Meeting; and at 14:00, Japan’shousing starts; at 22:30, U.S. wholesale inventories; at 24:30, U.S. weekly natural gas inventories; at 25:00, Russian retail sales; at 26:30, Brazilian employment figures; and at 27:00, U.S. weekly crude oil inventories.I would like to carefully monitor the upside potential of the U.S. dollar, which rose following the holiday break.