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

With the GBP/JPY pair reversing its upward trend to close with a bearish daily candle, traders 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 U.S. July Producer Price Index (PPI), which came in at 3.3% year-over-year—significantly exceeding market expectations of 2.5% and up from the previous month’s 2.3%. 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-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, up 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 appears to have 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 the U.S. capacity utilization rate; at 23:00, the U.S. University of Michigan Consumer Sentiment Index and U.S. business inventories; and at 29:00, U.S. securities investment in the U.S.After initially extending gains, the GBP/JPY pair reversed course to close with a bearish daily candle; I intend to carefully monitor its direction.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed