Investors should watch for further downside potential in the pound, which has fallen sharply against the yen

Investors should watch for further downside potential in the pound, which has fallen sharply against the yen

07.04.2025

Last weekend, the U.S. dollar rose against the euro despite the fact that average hourly earnings in the U.S. March employment report, released on the 4th, fell to 3.8% year-over-year from 4.0% the previous month.The EUR/USD pair fell from 1.1107 to 1.0926. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the RSI has begun to decline from 79, and on the daily chart, a divergence has been observed between the candlesticks and the RSI.

Among European currencies, the pound continued to decline against the yen. The GBP/JPY pair fell from 191.750 to 187.611. The decline followed the 20-period moving average on the hourly chart. On the 4-hour chart, the price moved along the -2σ line of the Bollinger Bands, and on the daily chart, it temporarily broke through the -3σ line. We will be watching closely to see if the pound continues to weaken at the start of the week.

Today’s economic indicators include Japan’s Monthly Labor Survey—Total Cash Wages at 8:30 a.m., Japan’s Economic Sentiment Index at 2:00 p.m., Germany’sGerman Industrial Production and Trade Balance, UK Halifax House Price Index, 6:00 PM: Eurozone Retail Sales, 11:30 PM: Remarks by Fed Governor Kuehler, and 2:00 AM: US Consumer Credit Balance. Keep an eye on the downside potential for the pound, which has fallen sharply against the yen.

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