Will the falling USD/JPY pair continue to test new lows? Keep a close eye on price movements at the start of the week.
01.12.2025
- Germany's Manufacturing PMI
- U.S. PMI (Purchasing Managers' Index)
Last weekend, the U.S. dollar weakened against the yen. While other yen crosses rose, the USD/JPY pair fell from 156.580 to 155.985.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 price is testing lower levels as it is capped by the 20-period MA, and on the daily chart, it is teetering on the brink of breaking below the 10-period MA line, which had previously served as support.
Among European currencies, the euro rose against the U.S. dollar. The EUR/USD pair rebounded from 1.1554 to 1.1607. The 200-period simple moving average (SMA) on the hourly chart acted as a support line.On the 4-hour chart, the price has completed a retest following a break above the 200 SMA and is trending higher again. On the daily chart, the price is forming higher lows from this month’s low, suggesting a double bottom is taking shape.
Today’s economic indicators include New Zealand housing permits at 6:45, Japan’s capital expenditure at 8:50, remarks by Bank of Japan Governor Ueda at 10:05, Germany’s manufacturing PMI at 17:55, the Eurozone’s manufacturing PMI at 18:00, and the UK’sOutstanding Consumer Credit, UK Money Supply, and UK Manufacturing PMI; at 23:45, the US PMI Purchasing Managers’ Index; at 24:00, the US IS Manufacturing Index; and at 24:30, remarks by UK MPC Member Dingla.We will be closely monitoring price movements at the start of the week to see if the falling USD/JPY pair will continue to test lower levels.
Author: Keisuke Sakurai
