All eyes are on whether the USD/JPY pair, which has fallen for two consecutive days, will rebound.
21.02.2025
- UK Retail Sales
- Japan: Consumer Price Index
In the previous day's U.S. currency trading, the U.S. dollar fell against the yen. The USD/JPY pair dropped from 151.467 to 149.414. A downtrend has formed along the 10-period moving average on the hourly chart.On the 4-hour chart, the RSI fell below the oversold level of 30 and dropped to 20. On the daily chart, the price has fallen to the -2σ level of the Bollinger Bands. We will need to monitor price movements during U.S. trading hours to see if the U.S. dollar continues to decline.
European currencies fell against the yen after Germany’s January producer price index, released yesterday, came in at 0.5% year-on-year—down from 0.8% the previous month and below market expectations of 1.3%.The EUR/JPY pair fell from 157.863 to 156.320. The decline occurred as the pair encountered resistance at the 10-period moving average on the hourly chart. On the 4-hour chart, the price has fallen to the -3σ level of the Bollinger Bands. Meanwhile, during today’s Asian trading session, the pair has recovered to the upper 157 yen range.
Today, at 8:30 AM, Japan’s Consumer Price Index; at 9:01 AM, the UK’s GfK Consumer Confidence Survey; at 1:00 PM, Malaysia’s Consumer Price Index; at 2:00 PM, India’s Manufacturing/Services PMI; at 4:00 PM, the UK’s Retail Sales;at 4:45 PM: France Business Sentiment, at 5:15 PM: France Manufacturing/Services PMI, at 5:30 PM: Germany Manufacturing/Services PMI, at 6:00 PM: Eurozone Manufacturing/Services PMI, at 6:30 PM: UK Manufacturing/Services PMI, at 10:30 PM: Canada Retail Sales,23:45 US PMI Purchasing Managers' Index, 24:00 US University of Michigan Consumer Sentiment Index, and 25:30 remarks by US Federal Reserve Vice Chair Jefferson. We will be watching to see if the USD/JPY pair, which has fallen for two consecutive days, will recover.
Author: Keisuke Sakurai
