Should we be wary of the upward momentum in GBP/JPY, which has hit a new high for the year?

Should we be wary of the upward momentum in GBP/JPY, which has hit a new high for the year?

15.08.2023

In the previous day’s U.S. currency trading, the U.S. dollar emerged as the strongest currency during U.S. trading hours, causing the EUR/USD pair to fall from 1.0960 to 1.0874. On the daily chart, the EUR/USD pair broke sharply below both the 20-day and 75-day moving averages and continued its decline, setting a new low for the month.On the weekly chart, the pair is currently positioned just below the 20-day moving average (MA). If it breaks below the weekly 20-day MA, there will be no support until the 75-day MA around 1.0807, so traders should be cautious regarding the direction of the market during European trading hours.

Among European currencies, the pound gained ground, trailing only the U.S. dollar, which has emerged as the strongest currency. The GBP/JPY pair rose from 183.456 to 184.738, setting a new year-to-date high. On the daily chart, the pair has posted six consecutive bullish candles, and the daily RSI has not yet reached the overbought level of 70, with a buffer around 62. We will closely monitor whether the pound’s rise against the yen continues into U.S. trading hours.

Today’s schedule includes UK employment figures and Sweden’s Consumer Price Index at 3:00 PM, Switzerland’s Producer Import Prices at 3:30 PM, Germany’s ZEW Economic Sentiment Index at 6:00 PM, and Canada’s Manufacturing Sales and U.S. Retail Sales at 9:30 PM,Canada’s Consumer Price Index, U.S. Import/Export Price Index, and U.S. NY Fed Manufacturing Index; at 11:00 PM, U.S. Business Inventories and the U.S. NAHB Housing Market Index; and at midnight, remarks by U.S. Federal Reserve Bank of Minneapolis President Kashkari. We should remain cautious regarding the upside potential of GBP/JPY, which has hit a new high for the year.

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