Should we be wary of price movements in USD/JPY during U.S. trading hours, as resistance levels appear to be strengthening?

Should we be wary of price movements in USD/JPY during U.S. trading hours, as resistance levels appear to be strengthening?

29.08.2025

In the U.S. currency market yesterday, the U.S. dollar fell against the yen despite the fact that the revised figure for U.S. second-quarter real GDP growth driven by personal consumption was revised upward from 1.4% to 1.6%. The USD/JPY pair fell from 147.479 to 146.658.The pair declined as it encountered resistance at the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, a gradual decline along the 10-period MA is evident, and on the daily chart, the pair is teetering on the brink of breaking below the 75-period MA support line.

European currencies saw the euro rise slightly against the yen, even though the Eurozone’s August business sentiment index, released yesterday, fell to 95.2 from 95.8 the previous month—coming in below the market forecast of 95.9.The euro/yen pair rose from 171.120 to 171.791. The price recovered from the -3σ to the +2σ levels of the hourly Bollinger Bands. On the 4-hour chart, the price is finding support at the 200 EMA, while on the daily chart, it is forming lower highs just below the 20 MA.

Today’s economic indicators include Japan’s employment statistics and Tokyo Consumer Price Index at 8:30, Japan’s industrial production and retail sales at 8:50, Japan’s housing starts and Consumer Sentiment Index at 14:00, and Germany’sEmployment Report; at 21:00, the German Consumer Price Index; at 21:30, Canadian Real GDP and U.S. Personal Income/expenditures, U.S. wholesale inventories, and U.S. PCE price index; at 22:45, the U.S. Chicago Purchasing Managers’ Index; and at 23:00, the U.S. University of Michigan Consumer Sentiment Index. We should remain highly vigilant regarding price movements in USD/JPY during U.S. trading hours, as the currency pair is facing resistance on the upside.