Caution Over Upside Potential for USD/JPY After Rebound?
25.02.2025
- Japan Corporate Services Price Index
- Richmond Fed Manufacturing Index (U.S.)
In the U.S. currency market the previous day, the U.S. dollar rebounded slightly against the yen. The USD/JPY pair traded between 148.847 and 149.865. It broke out from below the 20-period moving average on the hourly chart to trade above it.On the 4-hour chart, the pair has rebounded from the -2σ level of the Bollinger Bands, and similar price action is evident on the daily chart as well. 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 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 fluctuated around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair rebounded after finding support at the 200-period exponential moving average (EMA), and on the daily chart, it is on the verge of breaking above the resistance zone formed by the 75-period MA.
Today, at 8:50, Japan’s Business Services Price Index; at 16:00, Germany’s real GDP; at 17:00, Taiwan’s industrial production; at 17:30, Hong Kong’s trade balance;at 19:00, remarks by Nagel, President of the German Federal Bank; at 21:00, Brazil’s Broad Consumer Price Index; at 22:00, Hungary’s policy interest rate and policy statement;at 23:00, the U.S. Housing Price Index and the S&P Case-Shiller Home Price Index; at 24:00, the U.S. Richmond Fed Manufacturing Index; and at 25:45, remarks by Fed 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
