Should we focus on the upside potential of the rising GBP/JPY pair?
23.06.2025
- Japan: Manufacturing/Non-Manufacturing PMI
- UK Manufacturing/Services PMI
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-period moving average, 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 despite the fact that the UK’s May retail sales figures, released on the 20th, fell to -1.3% year-on-year from 5.3% the previous month, missing market expectations of 1.7%. The GBP/JPY pair rose from 195.631 to 196.689, with prices moving 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 p.m., the Eurozone Manufacturing/Services PMI at 5:00 p.m., the UK Manufacturing/Services PMI at 5:30 p.m., the U.S. PMI (Manufacturing/Non-Manufacturing/Composite) at 10:45 p.m.,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.
Author: Keisuke Sakurai
