Should we keep an eye on the direction of the pound against the yen?

Should we keep an eye on the direction of the pound against the yen?

09.08.2023

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen after Canada’s June trade balance—released yesterday—showed the deficit widening from CAD 3.44 billion in the previous month to CAD 3.73 billion. 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, CAD/JPY is moving toward the upper end of the 106–108 yen range, so we will be watching to see if the Canadian dollar recovers toward the end 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 level. It was a day where the market direction was extremely difficult to gauge. From a technical perspective, the GBP/JPY pair has been forming higher lows on the daily chart, and the daily RSI is also trending upward, so it will be worth watching whether the pound gains strength during U.S. trading hours.

Today’s schedule includes the U.S. MBA Mortgage Applications Index at 8:00 PM, India’s Money Supply at 8:30 PM, Brazil’s Retail Sales at 9:00 PM,Mexico’s Consumer Price Index and Producer Price Index at 9:30 PM, Canada’s Housing Starts at 9:30 PM, U.S. Weekly Crude Oil Inventories at 11:30 PM, Russia’s Consumer Price Index at 1:00 AM, and the U.S. 10-Year Treasury Auction at 2:00 AM. I intend to carefully assess the direction of the pound against the yen.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   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

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   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?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran