Caution is advised regarding the downside potential of GBP/JPY, which is falling amid a strong yen

Caution is advised regarding the downside potential of GBP/JPY, which is falling amid a strong yen

21.12.2023

In yesterday’s U.S. currency markets, the U.S. dollar fell slightly against the yen after the MBA Mortgage Applications Index, released yesterday, deteriorated to -1.5% from the previous week’s 7.4%. The USD/JPY pair fell slightly from 144.084 to 143.250. The USD/JPY pair has continued to decline during today’s Asian trading session, already falling to 142.795.As Europe and the U.S. enter the Christmas season from the weekend through the beginning of next week, traders should remain cautious regarding price movements ahead of the holiday break.

European currencies saw the pound fall sharply against the yen after the UK’s November Consumer Price Index, released yesterday, showed core year-on-year inflation slowing to 5.1% from 5.7% the previous month. The GBP/JPY pair fell by about 2 yen, from 183.332 to 181.265.The pair rebounded after touching the 20-day moving average on the daily chart. The yen has continued to strengthen during today’s Asian trading session, with the price falling to 180.461. We will monitor the situation carefully to see if the pound continues to weaken as the yen strengthens.

Today, at 5:30 PM, Hong Kong’s current account balance; at 8:00 PM, the UK’s CBI Retail Trade Survey, Turkey’s TCMB policy rate and statement; at 10:30 PM, Canada’s retail sales;U.S. Initial Jobless Claims, U.S. Q3 GDP, U.S. Personal Consumption Expenditures, U.S. Philadelphia Fed Business Outlook Survey at 10:30 PM, U.S. Leading Economic Index at 12:00 AM, U.S. Weekly Natural Gas Inventories at 12:30 AM, and the U.S. Kansas City Fed Manufacturing Activity Index at 1:00 AM.We must remain highly vigilant regarding the downside potential for GBP/JPY, which is declining amid a strengthening 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