Should we keep an eye on the pound's upside potential against the yen?

Should we keep an eye 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 to 4.01 million units from 3.93 million units the previous month.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 have fallen 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 following its rise against the yen.