Should we focus on the upside potential of GBP/JPY, which is showing signs of a rebound?

Should we focus on the upside potential of GBP/JPY, which is showing signs of a rebound?

18.03.2024

Last weekend, the U.S. dollar weakened slightly against the euro after the March New York Fed Manufacturing Index, released on the 15th, deteriorated from -2.4 in the previous month to -20.9. The EUR/USD pair rose slightly from 1.0872 to 1.0899, avoiding a second consecutive day of losses.On the daily chart, the 20-day moving average is acting as support, so we should watch to see if the U.S. dollar continues to weaken.

Among European currencies, the pound rose sharply against the yen. The GBP/JPY pair climbed from 188.588 to 190.023. On the 4-hour chart, the 200-period SMA provided support, triggering a reversal, and the pair has begun to rebound. However, since it has fallen below the recent low on the daily chart, we will need to closely monitor whether the GBP/JPY forms an expansion pattern if it continues to rise.

Today’s schedule includes: Japan’s machinery orders at 8:50, the UK’s Rightmove house prices at 9:01, China’s retail sales and industrial production at 11:00, Malaysia’s trade balance at 13:00, Hong Kong’s employment statistics at 17:30, and the Eurozone’s consumer price index and trade balance at 19:00,at 8:30 PM Turkey’s Housing Price Index, at 9:30 PM Canada’s Industrial Production and Raw Materials Price Index, at 10:00 PM Canada’s Existing Home Sales, at 11:00 PM the U.S. NAHB Housing Market Index, and at 12:30 AM the U.S. 6-month Treasury bill auction. We will closely monitor the upside potential of GBP/JPY, which is currently showing signs of a rebound.