All eyes are on whether the falling pound will recover

All eyes are on whether the falling pound will recover

18.04.2024

In yesterday’s U.S. currency trading, the U.S. dollar fell against the yen despite the U.S. MBA Mortgage Applications Index, released yesterday, recovering to 3.3% from 0.1% the previous week. The USD/JPY pair fell from 154.734 to 154.157.The pair has continued to decline during today’s Asian session, breaking below the 154 yen level to reach 153.950. On the 4-hour chart, the price is positioned just below the 20-day moving average (MA). If it breaks below the 20-day MA, support will disappear until the low 153 yen range, so we should remain vigilant regarding dollar movements triggered by comments from key officials.

Among European currencies, the pound fell during U.S. trading hours. The GBP/JPY pair dropped from 192.838 to 191.681, briefly dipping below the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the 75-period SMA is acting as a support level, while on the daily chart, the pair is trading above the 10-period SMA. Since the daily candlesticks have frequently formed upper shadows, we will be watching closely to see if the pound gains momentum during European trading hours.

Today’s economic indicators include Japan’s foreign and domestic securities investment at 8:50, Australia’s employment report at 10:30, Japan’s tertiary industry activity index at 13:30, Turkey’s housing prices at 16:00, the Eurozone’s current account balance at 17:00, Hong Kong’s employment report at 17:30, and the Eurozone’sconstruction output, 21:30 US initial jobless claims and the Philadelphia Fed Business Outlook Index, 22:05 remarks by Fed Governor Bowman, 23:00 the US Leading Economic Index and existing home sales, and 24:00 remarks by Atlanta Fed President Bostic.We will carefully assess the direction to see if the falling pound will recover.