All eyes are on whether the GBP/JPY pair, which has fallen by about 2.5 yen, will show signs of recovery
26.04.2023
- U.S. 5-Year Treasury Auction
- German GfK Consumer Confidence Survey
In yesterday’s U.S. currency trading, the U.S. dollar weakened after the Richmond Fed Manufacturing Index for April, released yesterday, came in at -10—below both the previous reading and market expectations. The USD/JPY pair fell by approximately 110 pips from 134.475 to 133.363.The decline halted as the 200-period EMA on the 4-hour chart provided support. USD/JPY continues to face resistance on the upside during today’s Asian session, with no signs of a rebound. We will closely monitor whether the US dollar weakens further following the release of economic indicators during US trading hours.
European currencies saw the pound fall against the yen after Bank of England Deputy Governor Broadbent stated that "there are signs that inflationary pressures are easing." The GBP/JPY pair fell by approximately 250 pips from 167.944 to 165.554, dropping below the 75-period moving average on the 4-hour chart.On the daily chart, while the 20-day moving average is providing support, the daily RSI has touched 70, so traders should watch for a continued decline during European trading hours.
Today’s schedule includes the German GfK Consumer Confidence Survey at 3:00 PM, the French Consumer Confidence Index at 3:45 PM, the Swedish Central Bank’s policy rate decision at 4:30 PM, the South African Producer Price Index at 6:30 PM, the UK CBI Retail Trade Survey at 7:00 PM, the US MBA Mortgage Applications Index at 8:00 PM, and US Wholesale Inventories at 9:30 PM.U.S. Durable Goods Orders, U.S. Weekly Crude Oil Inventories at 11:30 PM, and a U.S. 5-Year Treasury Auction at 2:00 AM. We will be watching closely to see if the GBP/JPY pair, which has fallen by about 2.5 yen, shows any signs of recovery.
Author: Keisuke Sakurai
