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

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

27.01.2026

In yesterday’s U.S. currency trading, 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 (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 failed to meet market expectations of 88.3.The EUR/JPY pair fell from 184.092 to 181.793, declining 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 strength of the euro 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, and the FranceConsumer Confidence Index, 11:00 PM for the U.S. S&P/Case-Shiller Home Price Index, 12:00 AM for the U.S. Richmond Fed Manufacturing Index and the U.S. Conference Board Consumer Confidence Index, 2:00 AM for remarks by German Bundesbank President Nagel, and 3:00 AM for the U.S. 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.

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