Should investors be wary of a pullback in GBP/JPY after seven consecutive days of gains?

Should investors be wary of a pullback in GBP/JPY after seven consecutive days of gains?

25.09.2024

In yesterday’s U.S. trading session, the Canadian dollar strengthened during U.S. hours, following the New Zealand dollar. The CAD/JPY pair rose from 105.903 to 107.048. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the price has already broken through the resistance line formed by the 200-period exponential moving average (EMA) with a real body candle, and on the daily chart, the RSI has rebounded from the oversold level of 30 to recover to 53.

Among European currencies, the pound rose against the yen. The GBP/JPY pair rose from 191.313 to 193.306. The price moved along the +2σ line of the hourly Bollinger Bands. On the 4-hour chart, the 10-period moving average (MA) is acting as support, and on the daily chart, the pair has risen for seven consecutive days. However, on the weekly chart, the 20-period MA resistance line looms overhead, so traders should pay close attention to price movements during European trading hours.

Today’s economic indicators include the Australian Consumer Price Index at 10:30, the French Consumer Confidence Index at 15:45, and the UKremarks by MPC member Green, Taiwan’s industrial production, the U.S. MBA Mortgage Applications Index at 8:00 PM, Brazil’s Extended Consumer Price Index at 9:00 PM, U.S. New Home Sales at 11:00 PM, U.S. Weekly Crude Oil Inventories at 11:30 PM, the U.S. 5-Year Treasury Auction at 2:00 AM, and remarks by Fed Governor Kuehler at 5:00 AM.We should be wary of a pullback in GBP/JPY, which has posted seven consecutive bullish candles.

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