Should investors be wary of the direction of the GBP/JPY pair, which has been weakening after hitting a new high this month?

Should investors be wary of the direction of the GBP/JPY pair, which has been weakening after hitting a new high this month?

12.01.2024

In the U.S. currency market yesterday, the U.S. dollar traded in a narrow range against the euro after the U.S. December CPI, released yesterday, showed a 0.1 percentage point decline in the year-over-year core rate to 3.9% from the previous month’s 4.0%.The EUR/USD pair traded between 1.0930 and 1.0998, with price action centered around the 20-period moving average on the hourly chart. During today’s Asian session, the EUR/USD pair has shown a slight upward trend. We will need to assess carefully whether the euro will continue to rise against the U.S. dollar.

In European trading, the pound rose slightly against the yen ahead of next week’s UK CPI release. GBP/JPY climbed from 185.069 to 186.162, hitting a new high for the month. However, during today’s Asian session, GBP/JPY faced resistance at the 20-period moving average on the hourly chart and is now heading lower. We will be closely monitoring whether the pound weakens as we head into European trading hours.

Today’s economic indicators include the Japan Economic Watchers Survey at 2:00 PM, Turkey’s current account balance at 4:00 PM,UK Monthly GDP, UK Industrial Production, UK Manufacturing Output, UK Trade Balance, at 16:45: French Consumer Spending and French Consumer Price Index, at 21:00: Indian Industrial Production and Indian Consumer Price Index, at 22:30: US Producer Price Index, and at 24:00: remarks by Kashkari, President of the Minneapolis Federal Reserve Bank.We should remain cautious regarding the direction of GBP/JPY, which has been weakening after hitting a new high this month.

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