All eyes are on price movements to see if the pound-yen pair can maintain its momentum after rising by just under 3 yen
27.01.2025
- U.S. New Home Sales
- Remarks by Swiss National Bank (SNB) President Schlegel
Last weekend, the U.S. dollar weakened against the euro. The EUR/USD pair traded between 1.0410 and 1.0521. A band walk along the +2σ line of the hourly Bollinger Bands was observed. On the 4-hour chart, the price has already reached the +3σ line of the Bollinger Bands, and on the daily chart, the RSI has risen to 60. The pair is currently in the process of setting a new high for the month.
European currencies saw the pound rise against the yen after the UK’s January services and manufacturing PMIs, released on the 24th, showed improvements in both sectors compared to the previous month. GBP/JPY rose from 192.074 to 194.736. The hourly RSI surged to 73.On the 4-hour chart, the candlesticks have extended to the 200-day SMA above, and on the daily chart, the price has broken above the 200-day EMA resistance line.
Today’s economic indicators include the China Manufacturing/Non-Manufacturing PMI at 10:30, the Japan Leading Economic Index at 14:00, remarks by ECB President Lagarde at 17:10, the Germany IFO Business Climate Index at 18:00,the US Chicago Fed National Activity Index at 22:30, US New Home Sales at 24:00, the US Dallas Fed Manufacturing Activity Index at 24:30, the US 2-year Treasury auction at 25:30, the US 5-year Treasury auction at 27:00, and remarks by SNB President Schlegel at 6:25 the following day.We will be watching the price action to see if the momentum of the GBP/JPY pair, which has risen by just under 3 yen, can be sustained.
Author: Keisuke Sakurai
