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

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

21.08.2025

In the U.S. currency market the previous day, 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, on the verge of a potential break below it.

European currencies saw the pound fall against the yen, despite the fact that the UK’s July Consumer Price Index (CPI), released yesterday, rose by 0.2 percentage points year-over-year from the previous month’s 3.6% to 3.8%, and the core index also came in higher than expected.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 served as 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, and the Eurozone’sManufacturing/Services PMI, at 17:30 UK Manufacturing/Services PMI, at 18:00 Eurozone Construction Output, at 20:30 US Remarks by Bostic, President of the Atlanta Fed, at 21:30 US Initial Jobless Claims,Canada’s Industrial Production and the U.S. Philadelphia Fed Business Outlook Index, at 22:45: U.S. PMI Purchasing Managers’ Index, at 23:00: U.S. Leading Economic Index, Eurozone Consumer Confidence Index, and U.S. Existing Home Sales.We will be watching closely to see if the USD/JPY pair, which has been trading lower within a range, will establish a clear direction.