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 U.S. currency market yesterday, the U.S. dollar fell against the yen. The USD/JPY pair dropped 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 simple moving average (SMA), which had previously provided support. Additionally, 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 public sector net borrowing 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.