Attention may turn to the euro/yen pair’s ability to rebound during U.S. trading hours after being capped on the upside

Attention may turn to the euro/yen pair’s ability to rebound during U.S. trading hours after being capped on the upside

17.01.2025

In the U.S. currency market yesterday, the U.S. dollar weakened against the yen after the release of U.S. December retail sales data showed a decline to 0.4% from 0.7% the previous month. The USD/JPY pair fell from 156.523 to 155.112.Prices fell as they encountered resistance at the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the candlesticks have fallen to near the support line of the 200-period simple moving average (SMA), and on the daily chart, the RSI has dropped from 62 to 44.

Despite the final figures for Germany’s December consumer price index, released yesterday, remaining unchanged from the previous month at 2.6% year-on-year, the euro fell against the yen.The EUR/JPY pair fell from 161.081 to 159.593, forming a downtrend along the -2σ line of the hourly Bollinger Bands. On the 4-hour chart, the price is facing resistance at the 10-MA, while on the daily chart, the 200-SMA is acting as a resistance level, causing the price to pull back.

Today, UK retail sales are scheduled for 4:00 PM, Thailand’s foreign exchange reserves for 4:30 PM, the Czech Republic’s producer price index for 5:00 PM, the EU current account balance for 6:00 PM,at 7:00 PM, the Eurozone Consumer Price Index; at 8:00 PM, Brazil’s inflation index; at 8:30 PM, India’s foreign exchange reserves; at 10:30 PM, Canada’s international securities turnover and U.S. housing starts; at 11:15 PM, U.S. industrial production and capacity utilization; and at 6:00 AM the following day, remarks by Bank of England Governor Bailey.We will be watching for a potential recovery in the EUR/JPY pair during U.S. trading hours, as it has been capped on the upside.

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