Should we keep an eye on the downside potential of the GBP/JPY pair, which is falling due to the strengthening yen and U.S. dollar?

Should we keep an eye on the downside potential of the GBP/JPY pair, which is falling due to the strengthening yen and U.S. dollar?

03.10.2023

In yesterday’s U.S. currency markets, the U.S. dollar emerged as the strongest currency during U.S. trading hours after the U.S. September PMI, released yesterday, came in higher than expected at 49.8, up from 48.9 the previous month.The USD/JPY pair rose from 149.401 to 149.697. Furthermore, the US dollar’s strength has been further fueled by comments made by Japanese Finance Minister Suzuki during Asian trading hours today, in which he stated that “exchange rate movements are a matter of volatility, not levels.” We should remain vigilant regarding whether today’s economic data releases during US trading hours will accelerate the US dollar’s rise.

Among European currencies, the pound fell toward the end of U.S. trading hours. The GBP/JPY pair dropped from 182.812 to 180.976. It has broken below the 75-day moving average (MA) on the daily chart and continues to trend lower during today’s Asian session. On the weekly chart, it has already broken below the 10-day MA, and if it breaks below the 20-day MA as well, there is a possibility of a double top or triple bottom forming; therefore, traders should pay close attention to the downside potential.

Today, the RBA will announce its policy rate and statement at 12:30, India’s Manufacturing PMI at 14:00, Sweden’s Money Market Inflation Rate at 15:00, Switzerland’s Consumer Price Index at 15:30, and France’s Budget Balance at 15:45.at 4:00 PM, Turkey’s Consumer Price Index and Producer Price Index; at 9:00 PM, Brazil’s Industrial Production and remarks by Bostic, President of the Atlanta Fed; at 10:00 PM, Singapore’s Manufacturing PMI; and at 11:00 PM, the U.S. JOLTS Job Openings report. We should pay close attention to the downside potential for GBP/JPY, which is falling due to the strengthening yen and U.S. dollar.

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