Market participants are likely keeping a close eye on the upside potential for the pound, which has risen against the yen

Market participants are likely keeping a close eye on the upside potential for the pound, which has risen against the yen

05.09.2025

In the U.S. currency market yesterday, the U.S. dollar strengthened during U.S. trading hours after the final reading of U.S. second-quarter nonfarm productivity—released yesterday—showed a significant improvement from the previous 2.4% to 3.3%, exceeding market expectations. The USD/JPY pair rose from 147.780 to 148.773, moving from below the 20-period moving average (MA) to above it on the hourly chart.On the 4-hour chart, prices are trending upward while finding support at the 20-period moving average (MA). On the daily chart, the pair is currently attempting to break above the 200-period simple moving average (SMA), which is acting as a resistance level.

European currencies saw the pound strengthen alongside the U.S. dollar, reaching its strongest level during U.S. trading hours after the UK’s August Construction PMI, released yesterday, improved to 45.5 from 44.3 the previous month.GBP/JPY rose from 198.752 to 199.816. A rebound occurred as the price found support at the 200-period SMA on the hourly chart. On the 4-hour chart, similar to the hourly chart, the price is rising with support at the 20-period MA, and on the daily chart, price action is ranging from the middle line of the Bollinger Bands to +2σ.

Today’s schedule includes remarks by U.S. Federal Reserve Bank of Chicago President Goolsbee at 8:00 a.m., Japan’s Monthly Labor Survey and Household Expenditure Survey at 8:30 a.m., Japan’s Economic Sentiment Index at 2:00 p.m., UK Retail Sales and Halifax House Price Index at 3:00 p.m., and Germany’s Manufacturing New Orders at 3:45 p.m., followed by France’strade balance and current account balance, at 6:00 PM: Eurozone real GDP, at 9:30 PM: U.S. and Canadian employment reports, and at 11:00 PM: the Canadian Ivey PMI. We will carefully assess the upside potential for the pound, which has risen 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