Will the falling USD/JPY pair continue to test lower levels? Keep a close eye on price movements at the start of the week.

Will the falling USD/JPY pair continue to test lower levels? Keep a close eye on price movements at the start of the week.

01.12.2025

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 faces resistance at the 20-period MA, and on the daily chart, it is hovering on the verge of breaking below the 10-period MA, 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-period SMA and is trending upward again. On the daily chart, the price has formed 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 manufacturing PMI at 18:00, and the UK’sUK consumer credit balances, UK money supply, and UK Manufacturing PMI; at 23:45, US PMI; at 24:00, US IS Manufacturing Index; and at 24:30, remarks by UK MPC member Dingra. 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.

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