Should we watch for a rebound in the GBP/JPY pair?

Should we watch for a rebound in the GBP/JPY pair?

08.12.2021

Yesterday, the three major U.S. stock indices all extended their gains, continuing a risk-on market characterized by rising stock prices, interest rates, and oil prices. Concerns over the spread of the Omicron variant of the novel coronavirus subsided, leading to a wave of buying across the market. WTI crude oil has recovered to $71.80 per barrel.

In the foreign exchange market, the downward trend in GBP/JPY appears to be stabilizing, with the pair now locked in a battle around the 150.45 level. From a technical perspective, GBP/JPY fell by about a third after being capped by the 200-period simple moving average (SMA) on the hourly chart, and is now attempting to rebound during today’s Asian trading session. We need to carefully assess whether buying interest will emerge in GBP/JPY.

Today, at 5:15 PM, ECB President Lagarde will speak; at 8:00 PM, South African retail sales will be released;at 9:00 PM, the U.S. MBA Mortgage Applications Index; at 12:00 AM, the Bank of Canada’s policy rate decision and statement, along with the U.S. JOLTS survey; at 12:30 AM, U.S. weekly crude oil inventories; at 3:00 AM, the U.S. 10-year Treasury auction; at 6:45 AM the following day, New Zealand’s Q3 manufacturing sales; and at 7:00 AM, remarks by RBA Governor Lowe.With stock markets rising globally, I want to closely monitor whether the currency markets will also shift into a risk-on mood.

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