Should we focus on the pound’s upside potential against the yen?

Should we focus on the pound’s upside potential against the yen?

22.08.2025

In the U.S. currency market yesterday, the U.S. dollar rose during U.S. trading hours after the July existing home sales figure, released yesterday, came in above market expectations, rising from 3.93 million units in the previous month to 4.01 million units.The EUR/USD pair fell from 1.1662 to 1.1601. It continued to decline, facing resistance at the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the candlesticks dropped to the -3σ level of the Bollinger Bands. On the daily chart, the pair is on the verge of a decline following the formation of a triple top.

Among European currencies, the pound strengthened against the yen. The GBP/JPY pair rose from 197.878 to 199.233. On the hourly chart, the price has moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, a reversal from the 200-period exponential moving average (EMA) is evident, and on the daily chart, the price is currently rebounding from below the 20-period MA to above it. We will be watching closely to see if the pound maintains its strength against the yen over the weekend.

Today’s key economic indicators include the UK GfK Consumer Confidence Survey at 8:01 a.m., Japan’s Consumer Price Index at 8:30 a.m., UK Retail Sales and Germany’s Real GDP at 3:00 p.m., Canada’s Retail Sales at 9:30 p.m., and remarks by Fed Chair Powell (Jackson Hole Symposium) at 11:00 p.m. We will be closely monitoring the pound’s upside potential against the yen.

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