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Should We Keep a Close Eye on the Direction of the USD/JPY and EUR/JPY, Which Have Shown Contrasting Price Movements?

Market Report

Should We Keep a Close Eye on the Direction of the USD/JPY and EUR/JPY, Which Have Shown Contrasting Price Movements?

Today's Highlights
  1. U.S. Weekly Crude Oil Inventories
  2. Germany's Consumer Price Index

In the U.S. currency market yesterday, the U.S. dollar fell against the yen after the U.S. April Consumer Price Index (CPI), released yesterday, showed a year-over-year decline of 0.1 percentage points from the previous month’s 2.4% to 2.3%. The USD/JPY pair fell from 148.447 to 147.380.On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price has fallen to just below the 20-period MA, and on the daily chart, the 200-period exponential moving average (EMA) is acting as a resistance level, causing the price to pull back.

European currencies rose, with the euro gaining against the yen after Germany’s May ZEW Economic Sentiment Index, released yesterday, improved significantly from the previous month’s -14.0 to +25.2.In contrast to USD/JPY, EUR/JPY rose from 164.137 to 165.213. The price moved from the -2σ to the +3σ levels of the hourly Bollinger Bands. On the 4-hour chart, an uptrend has formed along the 10-period moving average (MA), and on the daily chart, the pair has risen for two consecutive days.

Today’s economic indicators include Japan’s Domestic Corporate Price Index at 8:50, Australia’s Wage Index at 10:30, and Germany’sConsumer Price Index at 15:00, remarks by German Bundesbank President Nagel at 17:15, remarks by U.S. Federal Reserve Governor Waller at 18:15, the U.S. MBA Mortgage Applications Index at 20:00, Canadian Housing Starts at 21:30,at 10:10 p.m. U.S. remarks by Federal Reserve Vice Chair Jefferson, and at 11:30 p.m. U.S. weekly crude oil inventories. We will carefully monitor the direction of the USD/JPY and EUR/JPY pairs, which have shown contrasting price movements.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management with a particular focus on foreign exchange markets, and he also has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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