Will the euro, which has weakened against the yen, recover? Market participants are likely to wait and see how prices move during European trading hours.
27.01.2026
- Japan Corporate Services Price Index
- U.S. S&P/Case-Shiller Home Price Index
In the U.S. currency market yesterday, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 113.382 to 112.058. Resistance became heavy at levels below the 10-period moving average on the hourly chart.On the 4-hour chart, the RSI has dropped to 25 just below the -2σ Bollinger Band, and similar price action is observed on the daily chart. Additionally, on the weekly chart, the price has broken below the 10-day moving average line, which had been providing support since last October, with a real body candle.
European currencies fell against the yen after Germany’s January IFO Business Climate Index, released yesterday, remained unchanged from the previous month’s 87.6 and failed to meet market expectations of 88.3.The euro/yen pair fell from 184.092 to 181.793, moving down along the -2σ line of the hourly Bollinger Bands. On the 4-hour chart, the RSI has plummeted to 26, and on the daily chart, the price has reached the vicinity of the -3σ line of the Bollinger Bands. However, as a rebound has been observed during today’s Asian session, we will be closely monitoring the euro’s strength during European trading hours.
Today’s economic indicators include the Japan Corporate Service Price Index at 8:50, the Australia NAB Business Confidence Index at 9:30, Japan Machine Tool Orders at 15:00, and the FranceConsumer Confidence Index, 11:00 PM for the US S&P/Case-Shiller Home Price Index, 12:00 AM for the US Richmond Fed Manufacturing Index and the US Conference Board Consumer Confidence Index, 2:00 AM for remarks by German Bundesbank President Nagel, and 3:00 AM for the US 5-year Treasury auction.I’d like to watch the price action during European trading hours to see if the euro, which has been weakening against the yen, will recover.
Author: Keisuke Sakurai
