Euro-yen ended yesterday with a bias toward yen strength. In today’s order book, buy orders were particularly heavy in the mid-¥176s, with substantial buying interest also seen near ¥175. Meanwhile, heavy sell orders were concentrated near ¥177 and ¥179.
Euro-yen traded within a range yesterday, with yen strength prevailing, and the yen strengthened further in the evening. The widening German-French 10-year yield spread was reported to have been a factor. Japan’s services price index was in line with market expectations, while France’s consumer confidence index came in below expectations, but euro-yen showed little reaction.
In the MT5 order book used today, buy orders were particularly heavy in the mid-¥176s, which attracted attention because of their proximity to resistance. Heavy buy orders were also seen near ¥175 and could function as support. By contrast, heavy sell orders were observed near ¥177 and ¥179, suggesting that round numbers were being watched.
Correlation analysis over the past 24 hours showed strong correlations between euro-yen and pound-yen, euro-dollar and pound-dollar, while dollar-yen, Australian dollar-yen and Australian dollar-US dollar were inversely correlated. In the latest currency-strength readings, the Australian dollar was the strongest and the euro the weakest, while the yen remained in negative territory.
The main economic events scheduled today are Canada’s policy rate announcement, the US FOMC’s policy rate announcement and the US Federal Reserve Chair’s press conference. Real-time EUR/JPY rates and correlation analysis tools are also being provided.