Should investors be wary of currency strength and weakness while the Japanese market is closed?

Should investors be wary of currency strength and weakness while the Japanese market is closed?

05.05.2025

Last weekend, the U.S. dollar weakened from late Asian trading hours through late U.S. trading hours.The EUR/USD pair rose from 1.1273 to 1.1380. On the hourly chart, prices extended from the -2σ to the +3σ Bollinger Bands. On the 4-hour chart, the price has shifted from below the 20-period moving average (MA) to above it, while on the daily chart, the 20-MA acted as a support level, leading to a rebound. We will be watching closely to see if the US dollar continues to weaken.

Among European currencies, the pound weakened further against the already soft U.S. dollar. GBP/USD fell for the fourth consecutive day.It fell from 1.3330 to 1.3258. On the hourly chart, it rebounded after encountering resistance at the 200-period SMA, while on the 4-hour chart, the downtrend along the 20-period MA continues. On the daily chart, the pair has broken below the 10-period MA, which had previously provided support. We will be watching to see if the pound remains weak during European trading hours.

Today’s key economic indicators include the Swiss Consumer Price Index at 3:30 p.m., the U.S. Non-Manufacturing PMI (revised) at 10:45 p.m., the U.S. ISM Non-Manufacturing Index at 11:00 p.m., and the U.S. 3-year Treasury auction at 2:00 a.m.Since the UK market is closed today and the Japanese market is closed today and tomorrow, traders should be cautious of sudden volatility swings involving the yen.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed