Will the market wait and see which way the euro-yen pair goes?

Will the market wait and see which way the euro-yen pair goes?

26.02.2025

In the U.S. currency market yesterday, the dollar fell against the yen despite the fact that the U.S. December Housing Price Index, released yesterday, showed a slight recovery to 0.4% from 0.3% the previous month, and the quarterly result also came in higher than the previous reading. The USD/JPY pair fell from 150.290 to 148.574. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, the downtrend along the 20-period moving average continues, and on the daily chart, the RSI has fallen to 32.

European currencies saw the euro trade in a narrow range against the yen after the final reading of Germany’s fourth-quarter real GDP, released yesterday, remained unchanged from the previous estimate of -0.2% year-on-year.The EUR/JPY pair traded between 156.085 and 157.304. Price action was seen fluctuating around the 20-period moving average on the hourly chart. On the 4-hour chart, prices are rising without testing new lows, and the daily chart also shows signs of maintaining upward momentum.

Today’s schedule includes the Australian Consumer Price Index at 9:30, the Japanese Leading Economic Index and Singapore’s Industrial Production at 14:00, Thailand’s policy rate announcement and statement at 16:00, the German GfK Consumer Confidence Survey at 16:45, the French Consumer Confidence Index at 17:00, South Africa’s Consumer Price Index and Taiwan’s Employment Statistics at 17:30, and Taiwan’s Real GDP at 17:30,at 21:00, the U.S. MBA Mortgage Applications Index; at 22:30, remarks by U.S. Richmond Fed President Barkin; at 24:00, U.S. New Home Sales; and at 26:00, Russian Industrial Production. I intend to carefully monitor the direction of the Euro/Yen pair, which is currently in a tight range.