Market Analysis: Yen and European Currencies Retreat from Previously Reached Lows


Last week, European currencies renewed their recent lows, while the yen and commodity currencies managed to remain in their old ranges. However, this week, everything can change dramatically since the fundamental data of the coming trading sessions is as saturated as possible. Data on the consumer price index in the Eurozone will be released today, and tomorrow, a similar index will be published in the UK. Also, central banks in the US and UK will announce their interest rate decisions on Wednesday and Thursday.


The dollar/yen currency pair is stuck between 146 and 148. After a sharp rise in early September, the price switched to sideways movement and, apparently, is accumulating strength for growth. If greenback buyers manage to gain a foothold above 147.80, the start of a new upward impulse towards last year's highs at 150.00-151.00 may occur. However, if we see a sharp pullback from the current levels or there is a false breakout at 148.00-150.00, a full-scale downward correction may happen.

The pair's pricing will depend almost entirely on tomorrow's Fed verdict (21:00 GMT+3). If a pause in the hawkish policy of the American regulator is announced, USD/JPY could instantly be at 144.00-145.00. If officials declare the need to further increase the rate, a test at 150 may occur.


Sellers of the single European currency last week managed to update the May low at 1.0630. The price has not gone lower yet, but if greenback buyers receive support from the Fed, the pair will most likely test the important range of 1.0500-1.0400. In the event of a negative rate decision for the dollar, buyers of EUR/USD may try to strengthen towards 1.0780-1.0800.

Today at 12:00 GMT+3, we are waiting for the publication of the basic consumer price index in the eurozone for August. A representative of the German Federal Bank, Joachim Wuermeling, will speak a little later.


The GBP/USD currency pair is gradually sliding towards 1.2300. If the current situation does not change, a renewal of the May lows of this year and a continuation of the downward trend in the direction of 1.2200-1.2000 may happen. Cancellation of the downward scenario is possible only after a sharp rise above 1.2600.

We expect important fundamental data for the pair tomorrow morning. In particular, the purchasing price index and the core consumer price index in the UK for August (09:00 GMT+3) will be released.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: EUR/USD Starts Increase While USD/JPY Dips Dollar Holds Steady after Producer Price Data Release GBP/JPY: Price Corrects from 8.5 Year High Is the UK really in a recession? Perhaps 2024 data will be different Market Analysis: GBP/USD Attempts Recovery While EUR/GBP Gains Strength

Latest articles


NVDA Share Price Soars 11% after Report

The signs of concern we wrote about yesterday have largely subsided. After three days of declines, the price of E-mini Nasdaq 100 futures bounced off the lower boundary of the channel (see yesterday's chart) and rose, led by NVDA stock.


Ethereum Price Falls after Exceeding $3,000

We previously wrote about the reasons for the positive sentiment in the ETH/USD market. Optimism was added by a post on X (Twitter) by Vitalik Buterin about the so-called Werkle trees. This technology, which should (according to the information


S&P 500 Inches Down After Long Rally as FOMC Minutes Approach

Aside from the performance of a national currency, a popular yardstick by which to gauge anticipation or reaction to an economic event or announcement is the market sentiment surrounding the top listed stocks on premier exchanges. Today, as market participants

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.