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Despite the improvement in GDP, will the market wait and see how much room the euro has to recover after its decline against the yen?

Market Report

Despite the improvement in GDP, will the market wait and see how much room the euro has to recover after its decline against the yen?

Today's Highlights
  1. Japan: Industrial Production
  2. U.S. New York Fed Manufacturing Index

Last weekend, the U.S. dollar saw a seesaw movement against the yen. The USD/JPY pair plummeted from 154.754 to 153.621 during U.S. trading hours, before rebounding sharply to near its opening price.On the 4-hour chart, the RSI is hovering around 52 just below the 20-period moving average (MA), while on the daily chart, it remains above the 10-period MA. On the monthly chart, the RSI has risen to 57, near the upper trendline.

Despite the fact that the eurozone’s third-quarter GDP, released on the 14th, improved by 0.1 percentage points year-over-year from 1.3% to 1.4%, the euro fell against the yen.The euro/yen pair fell from 179.963 to 178.973. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the band walk along the +2σ line of the Bollinger Bands has broken down, and on the daily chart, the RSI has pulled back from the 70 level.

Today’s economic indicators include Japan’s real GDP at 8:50, the UK’s Rightmove House Price Index at 9:01, Japan’s industrial production at 13:30, Canada’s housing starts at 22:15, remarks by a member of the Bank of England’s Monetary Policy Committee (MPC) at 22:20, and Canada’sInternational Securities Turnover, U.S. NY Fed Manufacturing Index, and Canada’s Consumer Price Index; at 23:00, remarks by U.S. NY Fed President Williams; at 23:30, remarks by U.S. Fed Vice Chair Jefferson; and at 24:00, U.S. Construction Spending.Despite the improvement in GDP, we will wait and see if the euro, which has fallen against the yen, has room to recover.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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