Should we keep an eye on the upside potential of the rising GBP/JPY pair?

Should we keep an eye on the upside potential of the rising GBP/JPY pair?

23.09.2024

Last weekend, the U.S. dollar saw a back-and-forth movement against the euro.The EUR/USD pair traded between 1.1136 and 1.1181. Price action lacked direction, fluctuating around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 20-period MA is providing support on the downside, while on the daily chart, the pair is stagnating near the +2σ level of the Bollinger Bands. However, as the US dollar is rising during today’s Asian session, we will be watching closely to see if it continues to strengthen against the euro.

Among European currencies, the pound rose against the yen. The GBP/JPY pair climbed from 188.688 to 191.961. The price moved from the -2σ to the +2σ levels on the hourly Bollinger Bands. On the 4-hour chart, the 200-period SMA, which had been acting as resistance, has now shifted to support. On the daily chart, the RSI has risen to 65, so we should keep an eye on the pound’s potential for further gains.

Today’s economic indicators include the French Manufacturing/Services PMI at 4:15 PM, the German Manufacturing/Services PMI at 4:30 PM, the Eurozone Manufacturing/Services PMI at 5:00 PM, the UK Manufacturing/Services PMI at 5:30 PM, and at 9:00 PM, remarks by Bostic of the Atlanta Fed:remarks by Bostic, President of the Atlanta Fed; at 21:30, the U.S. Chicago Fed National Activity Index; at 22:45, U.S. Manufacturing/Services PMI; at 23:15, remarks by Goolsbee, President of the Chicago Fed; and at 02:00, remarks by Kashkari, President of the Minneapolis Fed. We want to carefully assess the upside potential of the rising GBP/JPY pair.