Attention is focused on whether the euro/yen pair can rebound during U.S. trading hours after being capped on the upside
17.01.2025
- U.S. Industrial Production
- Canada: International Securities Trading Volume
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.The price fell as it 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 fact that Germany’s final December consumer price index, released yesterday, remained 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 10-period moving average (MA) is acting as resistance, while on the daily chart, the 200-period simple moving average (SMA) is acting as a resistance zone, causing prices 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 U.S. capacity utilization; and at 6:00 AM the following day, remarks by Bank of England Governor Bailey.We will be watching for the Euro/Yen’s ability to recover during U.S. trading hours after being capped on the upside.
Author: Keisuke Sakurai
