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

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 near the 200-period simple moving average (SMA) was confirmed, while on the daily chart, the pair faced resistance at the 200-SMA, pulled back to the 20-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 opening of today’s Asian session.

Today’s economic indicators include 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 indicators or high-profile speeches are scheduled for today.We intend to cautiously monitor the upside potential of the EUR/JPY pair, which opened with a gap up.

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