Should We Focus on the Upside Potential of the Rising USD/JPY?
12.02.2025
- Remarks by Federal Reserve Board Member Waller
- Remarks by Green, a Member of the MPC
In the U.S. currency market yesterday, the U.S. dollar rose against the yen. The USD/JPY pair rose from 151.655 to 152.596. It moved from the -2σ to the +3σ levels of the hourly Bollinger Bands.On the 4-hour chart, the candlesticks have already extended to just below the 75-MA, and on the daily chart, the pair has rebounded and recovered from the 200-SMA line, which had appeared poised to be broken. We will be closely monitoring whether the U.S. dollar continues to rise following remarks by key officials during U.S. trading hours.
Among European currencies, the euro rebounded against the U.S. dollar. The EUR/USD pair rose from 1.0292 to 1.0381, breaking through the upper resistance zone marked by the 200-period SMA on the hourly chart.On the 4-hour chart, the pair has rebounded without testing a new recent low, and on the daily chart, the RSI—which had fallen to 40—is recovering toward the midpoint. We will assess the situation carefully to determine whether the price action during European trading hours will signal a shift in market strength.
Today’s economic indicators include the U.S. MBA Mortgage Applications Index at 21:00, the U.S. Consumer Price Index at 22:30, remarks by Green, a member of the UK’s MPC, and testimony by Fed Chair Powell before Congress at 24:00, U.S. weekly crude oil inventories at 24:30,at 26:00, remarks by German Bundesbank President Nagel and U.S. Atlanta Fed President Bostic; at 27:00, the U.S. 10-year Treasury auction;at 28:00, U.S. budget balance; and at 7:05 the following day, remarks by Fed Governor Waller are scheduled. We will closely monitor the upside potential of the USD/JPY pair, which has been rising.
Author: Keisuke Sakurai
