Should investors be wary of the upside potential for the euro/yen pair, which is hitting record highs?

Should investors be wary of the upside potential for the euro/yen pair, which is hitting record highs?

20.11.2025

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 along the -2σ line of the hourly Bollinger Bands was observed. On the 4-hour chart, the retest following the break above the 200-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 EUR/JPY 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 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 the 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 (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, along with remarks by U.S. Federal Reserve Governor Cook.Keep an eye on the upside potential for the EUR/JPY pair, which is hitting all-time highs.

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