Should We Be Wary of Upside Potential for GBP/JPY, Which Hit a New High This Year?
27.02.2024
- Europe: Money Supply
- U.S. S&P Case-Shiller Home Price Index
In U.S. currency trading the previous day, 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.From a technical perspective, the CAD/JPY pair’s daily RSI stands at 60.7, leaving room to rise before reaching the overbought level of 70. Furthermore, since the weekly RSI is also approaching 70, we will be watching price movements during European trading hours closely.
Among European currencies, the pound hit a new high against the yen, and the GBP/JPY pair reached a new high for the year.Although the pair showed a slight pullback after rising from 190.320 to 191.315, it has avoided hitting a new low without experiencing a significant decline. Therefore, 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 17:30,6:00 p.m. – Eurozone Money Supply; 9:00 p.m. – Mexico’s Trade Balance and Brazil’s Broad Consumer Price Index; 10:00 p.m. – Hungary’s Central Bank Policy Rate; 10:30 p.m. – U.S. Durable Goods Orders;at 23:00, the U.S. Housing Price Index and the S&P Case-Shiller Home Price Index; at 23:05, remarks by U.S. Federal Reserve Vice Chair Bar; and at 24:00, the U.S. Richmond Fed Manufacturing Index. We will cautiously monitor the upside potential for GBP/JPY, which has hit a new high this year.
Author: Keisuke Sakurai
