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.

Will the euro, which has weakened against the yen, recover? Market participants are watching price movements during European trading hours.

27.01.2026

In the U.S. currency market the previous day, the Canadian dollar fell against the yen. The CAD/JPY pair fell 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 the daily chart is showing a similar price movement to the 4-hour chart. Additionally, on the weekly chart, the price has broken below the 10-period moving average (MA) 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 fell short of market expectations of 88.3. The euro/yen pair fell from 184.092 to 181.793.It declined 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 trading session, we will be closely monitoring the euro’s strength during European trading hours.

Today’s economic indicators include the Japan Corporate Services Price Index at 8:50, the Australia NAB Business Confidence Index at 9:30, Japan Machine Tool Orders at 15:00, the France Consumer Confidence Index at 16:45, the U.S. S&P/Case-Shiller Home Price Index at 23:00,at 24:00, the U.S. Richmond Fed Manufacturing Index and the U.S. Conference Board Consumer Confidence Index; at 26:00, remarks by German Bundesbank President Nagel; and at 27:00, a U.S. 5-year Treasury auction.I’d like to closely monitor price movements during European trading hours to see if the euro, which has been weakening against the yen, will recover.