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Should We Keep an Eye on the Upside Potential for the Pound, Which Has Risen Against the Yen?

Market Report

Should We Keep an Eye on the Upside Potential for the Pound, Which Has Risen Against the Yen?

Today's Highlights
  1. New Orders in Germany's Manufacturing Sector
  2. U.S. Employment Report

In U.S. currency trading the previous day, the U.S. dollar strengthened during U.S. trading hours after the final reading of U.S. second-quarter nonfarm labor productivity—released yesterday—showed a significant improvement from the previous figure of 2.4% to 3.3%, exceeding market expectations.The USD/JPY pair rose from 147.780 to 148.773. On the hourly chart, the price has moved from below the 20-period moving average (MA) to above it.On the 4-hour chart, prices are trending upward while finding support at the 20-period moving average (MA), and 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 zone.

European currencies saw the pound strengthen alongside the U.S. dollar—reaching its strongest level during U.S. trading hours—as the UK’s August Construction PMI, released yesterday, improved to 45.5 from 44.3 the previous month. The GBP/JPY pair 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 Bollinger Band midline to +2σ.

Today’s schedule includes remarks by U.S. Federal Reserve Bank of Chicago President Goolsbee at 8:00, Japan’s Mainichi Labor Statistics and Household Expenditure Survey at 8:30, Japan’s Economic Sentiment Index at 14:00, UK Retail Sales at 15:00,UK Halifax House Price Index and German New Manufacturing Orders; at 15:45, the French Trade Balance and Current Account; at 18:00, Eurozone Real GDP; at 21:30, U.S. and Canadian Employment Reports; and at 23:00, the Canadian Ivey Purchasing Managers’ Index.We want to carefully assess the upside potential for the pound, which has risen against the yen.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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