Should we focus on the upside potential of the rising GBP/JPY pair?

Should we focus on the upside potential of the rising GBP/JPY pair?

23.06.2025

Last weekend, the U.S. dollar rose against the euro after the U.S. Leading Economic Index for May, released on the 20th, remained unchanged from the previous month’s -0.1% and matched market expectations. The USD/JPY pair rose from 145.123 to 146.218, breaking above the 20-period moving average on the hourly chart.On the 4-hour chart, the price is finding support at the 10-MA, and on the daily chart, it has reached a new high for the month. The price has extended to the +2σ level of the Bollinger Bands.

Despite the fact that the UK’s May retail sales figures, released on the 20th, fell to -1.3% year-on-year from the previous month’s 5.3%—missing market expectations of 1.7%—the pound rose against the yen. GBP/JPY climbed from 195.631 to 196.689, with prices rising along the 10-period moving average on the hourly chart.On the 4-hour chart, candlesticks are trending upward toward the +2σ line of the Bollinger Bands, while on the daily chart, a gradual upward trend along the 20-day moving average continues.

Today’s economic indicators include the German Manufacturing/Non-Manufacturing PMI at 4:30 PM, the Eurozone Manufacturing/Services PMI at 5:00 PM, the UK Manufacturing/Services PMI at 5:30 PM, the U.S. PMI Purchasing Managers’ Index (Manufacturing/Non-Manufacturing/Composite) at 10:45 PM,at 11:00 PM, U.S. Existing Home Sales and remarks by Fed Vice Chair Bowman, and at 12:00 AM, remarks by German Bundesbank President Nagel. I intend to cautiously monitor the upside potential of the rising GBP/JPY pair.

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