All eyes are on whether the euro-dollar pair, which avoided a sharp decline and rebounded, will continue to rise.
06.01.2026
- U.S. PMI (Purchasing Managers' Index)
- UK Services PMI
In the U.S. currency market yesterday, the U.S. dollar fell against the yen. The USD/JPY pair dropped from 157.294 to 156.136. It fell from the +2σ to the -2σ levels on the hourly Bollinger Bands. On the 4-hour chart, the candlesticks have fallen to the 200-day SMA, which is acting as support, while on the daily chart, the pair has failed to break above last month’s high, indicating heavy resistance.
Among European currencies, the euro saw a seesaw battle against the U.S. dollar.The EUR/USD pair rose from 1.1659 to 1.1729, forming a bullish candle with a lower wick. It recovered from the -2σ to the +2σ levels of the hourly Bollinger Bands. On the 4-hour chart, the 200-period SMA acted as a support level, with a rebound occurring just below it, and the RSI recovered from 28 to 51. On the daily chart, the RSI has turned upward after falling from 70 to 52.
Today’s economic indicators include Japan’s monetary base at 8:50, France’s consumer price index at 16:45, France’s non-manufacturing PMI at 17:50, Germany’s non-manufacturing/Manufacturing PMI at 17:55, Eurozone Services PMI at 18:00, UK Services PMI at 18:30, German CPI at 22:00, remarks by Barkin, President of the Richmond Fed, and US PMI at 23:45. We will be watching price movements during European trading hours to see if the EUR/USD pair, which avoided a sharp decline and reversed course, will continue to extend its gains.
Author: Keisuke Sakurai
