Caution over upside potential for USD/JPY following a rebound
25.02.2025
- Japan Corporate Services Price Index
- Richmond Fed Manufacturing Index
In the previous day’s U.S. currency trading, the U.S. dollar saw a slight rebound against the yen. The USD/JPY pair traded between 148.847 and 149.865. On the hourly chart, the price jumped from below the 20-period moving average to above it. On the 4-hour chart, there was a rebound from the -2σ line of the Bollinger Bands, and the daily chart shows a similar price movement. We will need to monitor whether the U.S. dollar continues to rise against the yen and keep an eye on the upside potential.
European currencies saw the euro trade in a narrow range against the U.S. dollar after the final reading of the Eurozone’s January Harmonized Index of Consumer Prices (HICP), released yesterday, remained unchanged from the previous month at 2.7% year-over-year.The EUR/USD pair traded between 1.0453 and 1.0528. Price action was seen fluctuating around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, a rebound has occurred with support from the 200-period exponential moving average (EMA), while on the daily chart, the pair is on the verge of breaking above the resistance zone formed by the 75-period MA.
Today’s schedule includes Japan’s Business Services Price Index at 8:50, Germany’s Real GDP at 16:00, Taiwan’s Industrial Production at 17:00, Hong Kong’s Trade Balance at 17:30, and at 19:00, Germany’sremarks by German Bundesbank President Nagel, at 9:00 PM Brazil’s Broad Consumer Price Index, at 10:00 PM Hungary’s policy rate and statement, at 11:00 PM the U.S. Housing Price Index and the S&P/Case-Shiller Home Price Index, at 12:00 AM the U.S. Richmond Fed Manufacturing Index, and at 1:45 AM remarks by U.S. Federal Reserve Vice Chair Bar.We should remain cautious about the upside potential of the USD/JPY pair, which has rebounded and is rising.
Author: Keisuke Sakurai
