Market participants are likely to keep a close eye on the direction of the USD/JPY and EUR/JPY pairs, which have shown contrasting price movements.

Market participants are likely to keep a close eye on the direction of the USD/JPY and EUR/JPY pairs, which have shown contrasting price movements.

14.05.2025

In the U.S. currency market yesterday, the U.S. dollar fell against the yen after the April U.S. 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 a pullback.

European currencies rose against the yen as the German ZEW Economic Sentiment Index for May, released yesterday, improved significantly from -14.0 in the previous month 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 on the hourly Bollinger Bands. An uptrend has formed along the 10-period moving average on the 4-hour chart, and the daily chart shows two consecutive days of gains.

Today’s economic indicators include Japan’s Domestic Corporate Goods Price Index at 8:50, Australia’s Wage Price Index at 10:30, Germany’s Consumer 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, and Canada’s Housing Starts at 21:30.22:10 U.S. Fed Vice Chair Jefferson’s remarks, and 23:30 U.S. weekly crude oil inventories. We will be closely monitoring the direction of the USD/JPY and EUR/JPY pairs, which have shown contrasting price movements.