Should We Wait and See How Much Further the Pound-Yen Pair Can Rise After Its Rebound?
03.03.2025
- UK Manufacturing PMI
- U.S. PMI (Purchasing Managers' Index)
Last weekend, the U.S. dollar rose against the yen despite the fact that the U.S. PCE deflator, released on February 28, showed a year-over-year decline—including the core component—compared to the previous month.The USD/JPY pair rose from 149.104 to 150.986, breaking above the resistance level of the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the price has recovered to near the 75-period SMA, and on the daily chart, a retracement has occurred from the -2σ Bollinger Band to the centerline.
Among European currencies, the pound strengthened against the U.S. dollar during U.S. trading hours, second only to the dollar. The GBP/JPY pair rose from 187.963 to 190.312. The hourly RSI recovered from 35 to 62.On the 4-hour chart, the price has risen from below the 20-period moving average (MA) to above it, while on the daily chart, it avoided hitting a new low and rebounded. It will be interesting to see if the pound maintains its strength into the beginning of the month.
Today’s schedule includes the Indonesia Manufacturing PMI, Malaysia Manufacturing PMI, and Thailand Manufacturing PMI at 9:30; the Indonesia Consumer Price Index at 13:00; the India Manufacturing PMI at 14:00; the Turkey Manufacturing PMI at 16:00;Turkey’s Consumer Price Index, at 5:30 p.m. Hong Kong’s Retail Sales and Switzerland’s Manufacturing PMI, at 5:50 p.m. France’s Manufacturing PMI, at 5:55 p.m. Germany’s Manufacturing PMI, at 6:00 p.m. the Eurozone’s Manufacturing PMI, at 6:30 p.m. the UK’s Manufacturing PMI,Eurozone Consumer Price Index at 19:00, U.S. PMI at 23:45, and U.S. ISM Manufacturing Index at 24:00. I intend to carefully monitor the upside potential of the GBP/JPY pair, which has shown signs of a rebound.
Author: Keisuke Sakurai
