Should we be wary of the upside potential for the euro/yen pair, which is hitting record highs?
20.11.2025
- Construction Output in Europe
- Prices of Agricultural and Industrial Products
In the previous day’s U.S. currency trading, the U.S. dollar strengthened most significantly from European to U.S. trading hours, rising against the euro. The EUR/USD pair fell from 1.1597 to 1.1517. A band walk was observed along the -2σ line of the hourly Bollinger Bands. On the 4-hour chart, the retest following the break above the 200-period SMA turned into a downtrend, and on the daily chart, the pair is now approaching this month’s low.
Among European currencies, the euro rose against the yen. The euro/yen pair climbed from 179.795 to 181.351. An uptrend has emerged along the 20-period moving average on the hourly chart. On the 4-hour chart, the RSI has surged to 82. On the daily chart, the pair has risen for three consecutive days, significantly surpassing its year-to-date high. It is currently on track to surpass its all-time high set in 1999.
Today’s economic indicators include: Japan’s foreign and domestic securities investment at 8:50, Germany’s producer price index and Switzerland’s trade balance at 16:00, the Eurozone’s construction output at 19:00, U.S. initial jobless claims, Canada’s industrial product prices, the U.S. Philadelphia Fed Business Outlook Index, and U.S. nonfarm payrolls at 22:30,at 10:50 PM: remarks by U.S. Federal Reserve President Hammack of the Cleveland Fed; at 11:30 PM: remarks by U.S. Federal Reserve Governor Barr; at 12:00 AM: U.S. existing home sales; at 12:30 AM: U.S. weekly natural gas inventories; and at 1:00 AM: U.S. Kansas City Fed Manufacturing Activity Index and remarks by U.S. Federal Reserve Governor Cook.We should watch for upside potential in the EUR/JPY pair, which is hitting record highs.
Author: Keisuke Sakurai
