Will the weakening GBP/JPY pair see a rebound? Keep an eye on price movements during European trading hours.

Will the weakening GBP/JPY pair see a rebound? Keep an eye on price movements during European trading hours.

10.02.2025

Last weekend, the Canadian dollar fell slightly against the yen following the release of Canada’s January employment statistics on the 7th, which showed the unemployment rate dropping by 0.1 percentage points from 6.7% to 6.6%. The CAD/JPY pair traded between 106.452 and 105.387, with price action fluctuating around the 20-period moving average on the hourly chart.On the 4-hour chart, prices have stalled at the -2σ level of the Bollinger Bands, and similar price action is observed on the daily chart.

Among European currencies, the pound fell against the yen. The GBP/JPY pair dropped from 189.589 to 187.074. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the downtrend along the 10-period MA continues, and on the daily chart, the downtrend that began at the end of December last year remains intact. We will be watching closely to see if the pound’s momentum continues to weaken and whether it will hit new lows.

Today’s key economic indicators include Japan’s Balance of Payments at 8:50 a.m., the Japan Economic Watchers Survey at 2:00 p.m., Norway’s Consumer Price Index, Turkey’s Employment Statistics, and Turkey’s Producer Price Index at 4:00 p.m., and remarks by ECB President Lagarde at 11:00 p.m. We will be watching price movements during European trading hours to see if the weakening GBP/JPY pair will stage a rebound.