Should we wait and see how much further the euro/yen pair will rise after opening with a gap up?

Should we wait and see how much further the euro/yen pair will rise after opening with a gap up?

28.07.2025

In the U.S. currency markets last weekend, the U.S. dollar emerged as the strongest currency from European trading hours through the late U.S. session. The USD/JPY pair rose from 146.808 to 147.943. The rally was supported by the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, a rebound from around the 200-period simple moving average (SMA) was observed, while on the daily chart, the pair faced resistance at the 200-period SMA, pulled back to the 20-period MA, and is now rebounding.

European currencies rose against the yen as the German IFO Business Climate Index for July, released on the 25th, showed a slight improvement to 88.6 from 88.4 the previous month.The EUR/JPY pair rose from 172.479 to 173.615, finding support at the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the price has expanded from the -2σ to the +3σ Bollinger Bands, and on the daily chart, an uptrend along the 10-period moving average (MA) has been continuing since early last month. Additionally, a gap has formed at the top of the range during today’s Asian trading session.

Today’s economic calendar includes the UK CBI Retail Trade Survey at 7:00 PM, the Dallas Fed Manufacturing Activity Index at 11:30 PM, the US 2-year Treasury auction at 12:30 AM, and the US 5-year Treasury auction at 2:00 AM. Aside from these, no other particularly significant economic indicators or high-profile speeches are scheduled for today.We will cautiously monitor the upside potential of the euro/yen pair, which opened with a gap up.