With the GBP/JPY pair reversing its upward trend to close with a bearish daily candle, market participants are likely to keep a close eye on its direction

With the GBP/JPY pair reversing its upward trend to close the day with a bearish candle, investors are likely to keep a close eye on its direction

15.08.2025

In the U.S. currency market yesterday, the U.S. dollar rose and reached its strongest level following the release of the July Producer Price Index (PPI), which came in at 3.3% year-over-year—a significant increase from the previous month’s 2.3% and well above the market forecast of 2.5%. The USD/JPY pair, which had been declining, rose from 146.223 to 147.965.On the hourly chart, the price rose from the -2σ to the +2σ Bollinger Bands. On the 4-hour chart, the pair showed a sharp recovery after breaking below the 200-day SMA.

European currencies saw the pound fluctuate against the yen after yesterday’s release of UK industrial production data for June showed an improvement to +0.2% year-on-year from the previous month’s -0.3%. GBP/JPY traded between 198.588 and 200.152, with price action straddling the 20-period moving average on the hourly chart.On the 4-hour chart, the pair is trading while facing resistance at the upper Bollinger Band +σ, and on the daily chart, the seven-day winning streak has been temporarily halted.

Today’s economic indicators include Japan’s Q2 GDP at 8:50, Japan’s industrial production at 13:30, U.S. retail sales and Canadian manufacturing shipments at 21:30,Canada’s Wholesale Sales, the U.S. NY Fed Manufacturing Index, and the U.S. Import Price Index; at 22:00, Canada’s Existing Home Sales; at 22:15, U.S. Industrial Production and U.S. Capacity Utilization; at 23:00, the U.S. University of Michigan Consumer Sentiment Index and U.S. Business Inventories; and at 29:00, U.S. Foreign Investment in U.S. Securities.After extending gains, the GBP/JPY pair reversed course to close with a bearish daily candle; we will carefully monitor its direction.