Should We Keep an Eye on the Pound's Direction Against the Yen?
09.08.2023
- U.S. MBA Mortgage Applications Index
- U.S. 10-Year Treasury Auction
In U.S. currency trading the previous day, the Canadian dollar fell against the yen after Canada’s June trade balance—released yesterday—showed the deficit widening from -3.44 billion Canadian dollars the previous month to -3.73 billion Canadian dollars. The CAD/JPY pair fell from 107.091 to 105.893.It broke below the 20-period moving average (MA) on the 4-hour chart. On the daily chart, which is a higher timeframe, the CAD/JPY pair is moving toward the upper end of its 106–108 yen range, so it will be worth watching to see if the Canadian dollar recovers toward the latter half of the week.
Among European currencies, the pound saw a seesaw movement against the yen. The GBP/JPY pair fell from 182.945 to 181.382 before recovering back to the 182-yen level. It was a day in which the market direction was extremely difficult to gauge.From a technical perspective, GBP/JPY has been forming higher lows on the daily chart, and the daily RSI is also trending higher; therefore, it will be worth watching to see if the pound gains strength during U.S. trading hours.
Today’s schedule includes the U.S. MBA Mortgage Applications Index at 8:00 p.m., India’s Money Supply at 8:30 p.m., Brazil’s Retail Sales at 9:00 p.m.,Mexico’s Consumer Price Index and Producer Price Index at 9:30 p.m., Canadian housing permits at 9:30 p.m., U.S. weekly crude oil inventories at 11:30 p.m., Russia’s Consumer Price Index at 1:00 a.m., and a U.S. 10-year Treasury auction at 2:00 a.m.I want to carefully assess the direction of the pound against the yen.
Author: Keisuke Sakurai
