Should we keep an eye on the resilience of the GBP/JPY pair, which rebounded to 7 yen after a sharp drop to 7.6 yen?

Should we keep an eye on the resilience of the GBP/JPY pair, which rebounded to 7 yen after a sharp drop to 7.6 yen?

06.08.2024

In the previous day's U.S. currency markets, the U.S. dollar weakened amid a global sell-off that included stock prices. It fell against the euro.The EUR/USD pair rose from 1.8092 to 1.1008, touching the +3σ line of the hourly Bollinger Bands. On the 4-hour chart, the RSI has risen to 70, and on the daily chart, the pair continues to rebound from the support line of the 200-day SMA. We will need to watch price movements during European trading hours to see if the U.S. dollar continues to weaken against the euro.

Among European currencies, the pound weakened from European to U.S. trading hours. GBP/JPY fell from 187.684 to 180.092, plunging to the -3σ level of the hourly Bollinger Bands.On the 4-hour chart, the RSI fell to 11. The daily chart showed a similar reading, with the pair dropping to the yen-strength levels seen on January 3 of this year. However, as a rebound has been observed during today’s Asian session, we will be watching closely to see if the rebound continues into the European session.

Today’s economic indicators include the RBA policy rate and statement at 1:30 PM, RBA Governor Block’s press conference at 2:30 PM, the Swiss unemployment rate at 2:45 PM, German manufacturing orders at 3:00 PM, Swiss retail sales at 3:30 PM, the UK construction PMI at 5:30 PM, and Eurozone retail sales at 6:00 PM.at 9:30 PM, Canada’s trade balance and the U.S. trade balance; at 2:00 AM, the U.S. 3-year Treasury auction; and at 7:45 AM the following day, New Zealand’s Q2 unemployment rate. I want to carefully assess the resilience of the GBP/JPY pair, which rebounded to the 7.00 level after a sharp drop to 7.60.

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