All eyes are on whether the pound, which has shown signs of a rebound, will maintain its upward trend

All eyes are on whether the pound, which has rebounded, will continue to rise

14.01.2025

In the U.S. currency market yesterday, the U.S. dollar traded in a seesaw pattern against the yen. The USD/JPY pair fluctuated between 156.917 and 157.956. The market lacked a clear direction, fluctuating around the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the 75-period moving average is providing support on the downside, and on the daily chart, the pair is trading without falling below the 20-period moving average, which serves as the benchmark for the current uptrend. We will be watching to see if the relative strength between the U.S. and Japanese markets becomes clearer during U.S. trading hours.

Among European currencies, the pound rebounded against the U.S. dollar. The GBP/USD pair fell from 1.2213 to 1.2101.It fell to its lowest level since November 2023. Although the downtrend along the 10-period moving average on the hourly chart had continued, the pair staged a significant rebound during U.S. trading hours and ultimately closed with a bullish candle featuring a lower wick. We will need to monitor price action during U.S. trading hours to see if the pound’s rebound momentum holds.

Today’s economic indicators include the Australian Westpac Consumer Confidence Index at 8:30, Japan’s Balance of Payments at 8:50, Thailand’s Consumer Confidence Index at 12:45, Japan’s Economic Watchers Survey at 14:00, and India’sWholesale Price Index, at 16:45 the French Budget Balance, at 20:00 the U.S. NFIB Small Business Optimism Index, at 22:00 Russia’s Foreign Exchange Reserves, at 22:30 the U.S. Producer Price Index, and at 8:00 the following day South Korea’s Employment Statistics.We’ll be watching closely to see if the pound, which has rebounded, can sustain its gains.