Market participants are watching for further upside potential in the pound against the yen following the improvement in the UK unemployment rate

Market participants are likely to keep a close eye on the upside potential for the pound, which has risen against the yen on the back of an improvement in the UK unemployment rate.

13.08.2025

In yesterday’s U.S. trading session, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 107.754 to 107.196. The price fell from the +2σ to the -3σ levels on the hourly Bollinger Bands. On the 4-hour chart, the pair is trading sideways with support at the 200-period SMA, while on the daily chart, resistance is building just below the 20-period MA.We will be closely monitoring the direction of the market to see if the Canadian dollar’s momentum continues to weaken during today’s U.S. trading session.

European currencies saw the pound rise against the yen following the release of the UK’s July employment statistics yesterday, which showed the unemployment rate improving by 0.1 percentage points from the previous month’s 4.5% to 4.4%. GBP/JPY rose from 198.713 to 200.076. An uptrend was observed along the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the trend along the 10-day moving average has continued since the start of this month, and on the daily chart, the pair has risen for six consecutive days. The candlesticks have extended up to the +3σ level of the Bollinger Bands.

Today’s schedule includes Japan’s Domestic Corporate Goods Price Index at 8:50, Australia’s Q2 Wage Cost Index at 10:30, Germany’s Wholesale Price Index and Consumer Price Index at 15:00, Japan’s Machine Tool Orders at 15:00, the U.S. MBA Mortgage Applications Index and South Africa’s Retail Sales at 20:00, and U.S. Federal Reserve Bank of Richmond President Barkin’s remarks at 21:00:Remarks by Richmond Fed President Barkin, at 11:30 PM: U.S. Weekly Crude Oil Inventories, at 2:00 AM: Remarks by Chicago Fed President Goolsbee, and at 2:30 AM: Remarks by Atlanta Fed President Bostic. We want to assess the upside potential for the pound, which has risen against the yen following an improvement in the UK unemployment rate.