Market participants are keeping a close eye on whether the GBP/JPY pair can recover from its decline

Market participants are keeping a close eye on whether the GBP/JPY pair can recover from its decline

02.05.2024

In the previous session, the U.S. dollar weakened after the FOMC decided to keep interest rates unchanged. The USD/JPY pair fell from 157.993 to 157.016. It moved from above the 20-period moving average on the hourly chart to below it.Fed Chair Powell stated, “It looks like it will take longer than previously anticipated to gain confidence that inflation is slowing.” Despite the retreat in rate cut expectations, the pair subsequently plummeted further, briefly touching 153.010.

Among European currencies, the pound fell against the yen. GBP/JPY dropped from 197.415 to 191.784.It broke below the 200-period SMA on the hourly chart. On the 4-hour chart, the 200-period SMA acted as support, triggering a rebound. On the daily chart, it briefly dipped below the 20-period MA. While some view the decline in cross-yen pairs as a result of currency intervention by the Bank of Japan, the price has continued to test lower levels during today’s Asian session; therefore, caution is advised regarding further declines in the pound during European trading hours.

Today’s schedule includes South Korea’s Consumer Price Index at 8:00, Japan’s Monetary Base at 8:50, Indonesia’s Manufacturing PMI at 9:30, Japan’s Consumer Sentiment Index at 14:00, Switzerland’s Consumer Price Index at 15:30, Turkey’s Manufacturing PMI at 16:00, Germany’s Manufacturing PMI at 16:55, the Eurozone’s Manufacturing PMI at 17:00,at 5:30 PM Hong Kong Real GDP, at 9:30 PM Canada International Merchandise Trade, U.S. Trade Balance, and U.S. Initial Jobless Claims, at 9:45 PM remarks by Bank of Canada Governor Macklem, at 11:00 PM U.S. Factory Orders, and at 11:30 PM U.S. Weekly Natural Gas Inventories. We will closely monitor the recovery potential of the GBP/JPY pair following its decline.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   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

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   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?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed