All eyes are on whether the consolidation in the GBP/JPY pair, which is trading near its highest level since the start of the year, will signal a clear direction.

All eyes are on whether the consolidation in the GBP/JPY pair, which is trading near its highest level since the start of the year, will signal a clear direction.

19.08.2025

In the previous day's U.S. currency trading, the U.S. dollar rose against the euro.The EUR/USD pair fell from 1.1715 to 1.1656. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price has declined without managing to break through last week’s high, and on the daily chart, it is barely finding support at the 20-period MA. However, on the weekly chart, the price has not yet broken below the 10-period MA support line, so we should keep an eye on price movements heading into the latter half of the week.

Among European currencies, the pound rose against the yen. The GBP/JPY pair traded between 199.392 and 200.256. It rose as the 20-period moving average (MA) on the hourly chart acted as a support level. On the 4-hour chart, price action has been lackluster, fluctuating around the 20-period MA. On the daily chart, the pair is currently trading near its year-to-date high and is attempting to break out to new highs, supported by the 10-period MA.

Today’s economic indicators include a Japanese 20-year fixed-rate government bond auction (time TBD), New Zealand’s Producer Price Index at 7:45 a.m., Australia’s Westpac Consumer Confidence Index at 9:30 a.m., the Eurozone’s current account balance at 5:00 p.m.,at 9:30 PM, the U.S. Housing Starts and the Canadian Consumer Price Index, and at 11:10 PM, remarks by U.S. Federal Reserve Vice Chair Bowman. We will be watching closely to see if the GBP/JPY pair, which has been trading sideways near its year-to-date highs, will show a clear direction.