Market participants are keeping a close eye on the upside potential for the pound, which has risen against the yen
05.09.2025
- Exclusive: New Orders in the Manufacturing Sector
- U.S. Employment Report
In the U.S. currency market yesterday, the U.S. dollar strengthened during U.S. trading hours after the final reading of second-quarter nonfarm labor productivity—released yesterday—showed a significant improvement from the previous 2.4% to 3.3%, beating 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. The pair rebounded after finding support at the 200-period SMA on the hourly chart. On the 4-hour chart, similar to the hourly chart, prices are rising with support at the 20-period MA, and on the daily chart, price action is ranging from the centerline 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 Mainichi Labor Statistics and Household Expenditure Survey at 8:30 a.m., Japan’s Leading Economic Index at 2:00 p.m., UK Retail Sales and Halifax House Price Index, and Germany’s New Manufacturing Orders at 3:00 p.m., and 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: Canada’s Ivey PMI. We will carefully assess the upside potential for the pound, which has risen against the yen.
Author: Keisuke Sakurai
