All eyes are on whether the USD/JPY pair, which has been trading within a range, will establish a clear direction

All eyes are on whether the USD/JPY pair, which has been trading within a range, will establish a clear direction

21.08.2025

In the previous day's U.S. currency trading, the U.S. dollar fell against the yen. The USD/JPY pair fell from 147.821 to 146.866.The price fell along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the price has already broken below the 200-period simple moving average (SMA) support line, while on the daily chart, it is currently searching for direction within the range-bound market that has persisted since early this month. Meanwhile, on the weekly chart, the price is hovering just below the 20-period MA, poised to break through.

Despite the fact that the UK’s July Consumer Price Index (CPI), released yesterday, rose by 0.2 percentage points year-on-year from the previous month’s 3.6% to 3.8%, and the core index also came in higher than expected, the pound fell against the yen. GBP/JPY fell from 199.445 to 197.858.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 is trending downward along the 20-period MA and has broken below the 200-period SMA, which had previously provided support, with a real body candle. Furthermore, on the daily chart, the price has already broken below the 20-period MA line.

Today’s schedule includes New Zealand’s trade balance at 7:45, Japan’s foreign and domestic securities investment at 8:50, the UK’s net public sector debt at 15:00, Germany’s manufacturing and non-manufacturing PMIs at 16:30, the Eurozone’s manufacturing and services PMIs at 17:00, the UK’s manufacturing and services PMIs at 17:30, and the Eurozone’s construction output at 18:00,20:30: US – Remarks by Bostic, President of the Atlanta Fed; 21:30: US – Initial Jobless Claims, Canada – Industrial Production, US – Philadelphia Fed Business Outlook Index; 22:45: US – PMI Purchasing Managers’ Index; 23:00: US – Leading Economic Index, Eurozone – Consumer Confidence Index, US – Existing Home Sales.We will be watching closely to see if the USD/JPY, which has been falling within a range, will establish a clear 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