Should investors be wary of the upside potential for GBP/JPY, which has hit a new high this year?

Should investors be wary of the upside potential for GBP/JPY, which hit a new high this year?

27.02.2024

In U.S. currency trading yesterday, the Canadian dollar, which had been falling, rebounded against the yen. The CAD/JPY pair rose from 111.191 to 111.617. A rebound was observed as the pair touched the 10-day moving average on the daily chart.Technically, the CAD/JPY pair’s daily RSI stands at 60.7, leaving room to reach the overbought level of 70. Additionally, since the weekly RSI is also nearing 70, we should keep an eye on price movements during European trading hours.

Among European currencies, the pound hit a new high against the yen, with the GBP/JPY pair reaching a new high for the year. Although the pair retreated slightly after rising from 190.320 to 191.315, it has avoided hitting a new low without suffering a significant decline. We will be watching closely to see if the pound continues to rise against the yen during U.S. trading hours.

Today’s economic indicators include Japan’s Consumer Price Index at 8:30, Germany’s GfK Consumer Confidence Survey at 16:00, France’s Consumer Confidence Index at 16:45, Hong Kong’s Trade Balance at 17:30, the Eurozone’s Money Supply at 18:00, Mexico’s Trade Balance at 21:00,Brazil’s Broad Consumer Price Index at 10:00 PM, the Hungarian Central Bank’s policy rate at 10:00 PM, U.S. Durable Goods Orders at 10:30 PM, the U.S. Housing Price Index and the S&P Case-Shiller Home Price Index at 11:00 PM, remarks by U.S. Federal Reserve Vice Chair Bar at 11:05 PM, and the U.S. Richmond Fed Manufacturing Index at 12:00 AM.We will cautiously monitor the upside potential for GBP/JPY, which has hit a new high this year.