Should we focus on the euro’s upside potential against the yen?

Should we focus on the euro’s upside potential against the yen?

15.10.2025

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen after Canada’s August housing starts data, released yesterday, deteriorated from a 0.1% decline in the previous month to a 1.2% decline. The CAD/JPY pair fell from 108.715 to 107.908.The price fell from the 20-period moving average (MA) on the hourly chart to just below the 200-period SMA. On the 4-hour chart, a downtrend is developing along the 20-period MA, while on the daily chart, the price is returning from the +3σ line of the Bollinger Bands toward the centerline.

European currencies rose against the yen as the German ZEW Economic Sentiment Index for October, released yesterday, improved to 39.3 from 37.3 the previous month.The EUR/JPY pair rose from 175.346 to 176.448. Price action remained entirely within the range of the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 20-period MA is capping the upside while the 75-period MA is providing support on the downside; on the daily chart, the 10-period MA is acting as a support line, and the pair is currently rebounding from it.

Today’s schedule includes the Australian Westpac Leading Index at 8:30, Japan’s Industrial Production at 13:30, remarks by BOE Deputy Governor Ramsden at 17:00, Eurozone Industrial Production at 18:00, MBA Mortgage Applications at 20:00, South Africa’s Retail Sales at 20:00,at 9:30 PM: Canada’s Manufacturing Sales and Wholesale Sales, and the U.S. NY Fed Manufacturing Index; at 10:30 PM: Remarks by U.S. Federal Reserve Governor Mian; at 12:45 AM: Remarks by UK BOE Deputy Governor Breeden; at 2:00 AM: Remarks by U.S. Federal Reserve Governor Waller; and at 3:00 AM: the U.S. Federal Reserve Beige Book.We will be watching for further upside potential in the euro, which has risen against the 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