Should we be on high alert regarding the movement of the GBP/JPY pair, which has returned to the 167-yen range?

Should we be on high alert regarding the movement of the GBP/JPY pair, which has returned to the 167-yen range?

22.06.2022

U.S. currencies saw active trading yesterday following the long weekend in the U.S., strengthening against the yen. However, since cross-yen pairs rose across the board, making the yen the weakest currency, we should exercise caution in determining whether yesterday’s trend will continue today. The USD/JPY pair rose by approximately 180 pips from yesterday’s low of 134.862 to 136.707. Against the euro, the market saw a seesaw pattern.

Among European currencies, the pound—ahead of today’s consumer price index release—is trading firm against the yen, much like the U.S. dollar, with GBP/JPY rising by approximately 260 pips from 165.189 to 167.817.Since the pair has comfortably surpassed the 78.6% Fibonacci retracement level connecting the high of 168.728 reached on the 9th of this month and the low of 159.992 recorded on the 16th of last week, we need to be cautious about whether the yen’s weakness will continue and push the pair to a new high for the year.

Today’s schedule includes the UK Consumer Price Index and UK Producer Price Index at 15:00 Asia time; remarks by Bank of England Deputy Governor Kanrif at 17:40 Europe time; the US MBA Mortgage Applications Index at 20:00; the Canadian Consumer Price Index at 21:30 US time; remarks by SNB Governor Jordan at 22:00; and remarks by US Federal Reserve Governor Barkin:Richmond Fed President’s remarks, at 10:30 PM EST: Fed Chair Powell’s congressional testimony, at 11:40 PM EST: BOC Senior Deputy Governor Rogers’ remarks, at 1:50 AM EST: Fed President Evans:Chicago Fed President, a U.S. 20-year Treasury auction at 2:00 a.m., and remarks by U.S. Philadelphia Fed President Harker at 2:30 a.m. We should remain vigilant regarding the movement of GBP/JPY, which has once again entered the 167 yen range.