Should we wait and see how the euro performs after its recent strength following the Japanese yen?

Should we wait and see how the euro performs after its recent strength following the Japanese yen?

22.07.2025

In yesterday’s U.S. trading session, the U.S. dollar weakened against the euro. The EUR/USD pair rose from 1.1614 to 1.1713. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the price has extended to the +3σ level of the Bollinger Bands, and on the daily chart, the price has broken above the 20-period MA—which had previously acted as resistance—with a real body candle. We will be watching for signs of whether the U.S. dollar’s weakness will continue during today’s European trading session.

Among European currencies, the euro showed strength, following the Japanese yen. The EUR/AUD pair rose from 1.7835 to 1.7929. The rise followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the price has extended to the +2σ level of the Bollinger Bands, and on the daily chart, it has been rising for four consecutive days above the 20-period MA. We will be closely monitoring whether the euro maintains its momentum during today’s U.S. trading session.

Today’s economic indicators include the release of the RBA minutes at 10:30, UK public sector net debt at 15:00,at 6:15 PM, remarks by Bank of England Governor Bailey; at 9:30 PM, remarks by Federal Reserve Chair Powell; at 11:00 PM, the Richmond Fed Manufacturing Index; and at 2:00 AM, remarks by Federal Reserve Vice Chair Bowman. We will carefully monitor the upside potential of the euro, which has been strengthening following the Japanese 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