Should We Keep an Eye on the Upside Potential for the Rising GBP/JPY Pair?

Should We Keep an Eye on the Upside Potential for the Rising GBP/JPY Pair?

23.06.2025

In U.S. currency markets last weekend, the U.S. dollar rose against the euro after the U.S. May Leading Economic Index, released on the 20th, remained unchanged from the previous month’s -0.1%, in line with market expectations.The USD/JPY pair rose from 145.123 to 146.218. It broke out from below the 20-period moving average (MA) on the hourly chart to trade above it. On the 4-hour chart, the price is finding support at the 10-period MA, and on the daily chart, it has reached a new high for the month. The price has extended as far as the +2σ level of the Bollinger Bands.

European currencies saw the pound rise against the yen, even though the UK’s May retail sales figures released on the 20th showed a year-over-year decline from the previous month’s 5.3% to -1.3%, falling short of market expectations of 1.7%.GBP/JPY rose from 195.631 to 196.689, with prices moving in line with the 10-period moving average (MA) on the hourly chart. On the 4-hour chart, candlesticks are trending upward toward the +2σ level of the Bollinger Bands, while on the daily chart, a gradual uptrend along the 20-period MA continues.

Today’s economic indicators include the German Manufacturing and Non-Manufacturing PMIs at 16:30, the Eurozone Manufacturing and Services PMIs at 17:00, the UK Manufacturing and Services PMIs at 17:30, the U.S. PMI Purchasing Managers’ Index (Manufacturing, Non-Manufacturing, and Composite) at 22:45,at 23:00, U.S. Existing Home Sales and remarks by Fed Vice Chair Bowman, and at 24:00, remarks by German Bundesbank President Nagel. I intend to cautiously monitor the upside potential of the rising GBP/JPY pair.