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Market Participants to Watch for Upside Potential in the Pound Against the Yen Following Improvement in U.K. Unemployment Rate

Market Report

Market Participants to Watch for Upside Potential in the Pound Against the Yen Following Improvement in U.K. Unemployment Rate

Today's Highlights
  1. Australia: Wage Index
  2. South Africa: Retail Sales

In the U.S. currency market the previous day, the Canadian dollar fell against the yen. The CAD/JPY pair fell from 107.754 to 107.196.The price fell within the range of the hourly Bollinger Bands, from +2σ to -3σ. On the 4-hour chart, the pair is trading sideways with support at the 200 SMA, while on the daily chart, resistance is building just below the 20 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%. The GBP/JPY pair 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-period 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, Japan’s Domestic Corporate Price Index will be released at 8:50, Australia’s Q2 Wage Cost Index at 10:30, and Germany’sWholesale Price Index, Germany’s Consumer Price Index, and Japan’s Machine Tool Orders; at 20:00, the U.S. MBA Mortgage Applications Index and South Africa’s Retail Sales; at 21:00, remarks by U.S. Federal Reserve Bank of Richmond Presidentremarks by Richmond Fed President, at 23:30: U.S. weekly crude oil inventories, at 26:00: remarks by U.S. Chicago Fed President Goolsbee, and at 26:30: remarks by U.S. Atlanta Fed President Bostic.We want to assess the upside potential for the pound against the yen, which has risen on the back of an improvement in the UK unemployment rate.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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