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Should We Keep an Eye on the Upside Potential of GBP/JPY, Which Has Hit a New Year-to-Date High?

Market Report

Should We Keep an Eye on the Upside Potential of GBP/JPY, Which Has Hit a New Year-to-Date High?

Today's Highlights
  1. Europe: Trade Balance
  2. U.S. New York Fed Manufacturing Index

Last weekend, the U.S. dollar fell slightly against the euro. The EUR/USD pair traded between 1.1701 and 1.1747. It moved from below the 20-period moving average (MA) on the hourly chart to above it.On the 4-hour chart, the RSI is hovering around 50 just below the 20-period moving average, indicating the market is searching for direction. On the daily chart, the price has been gradually raising both its lows and highs since last month, signaling an upward trend.

European currencies saw the pound rise against the yen after the UK’s July manufacturing output, released on the 12th, improved to 0.2% year-over-year from 0.0% the previous month.GBP/JPY rose from 199.618 to 200.478. An uptrend has emerged along the 20-period moving average on the hourly chart. On the 4-hour chart, the price has reached the +3σ level of the Bollinger Bands, and on the daily chart, it has set a new year-to-date high.

Today’s economic indicators include the UK Rightmove House Price Index at 8:01, Swiss Producer Import Prices at 15:30, and at 18:00, the Eurozonetrade balance, and Canada’s existing home sales at 18:00; Canada’s industrial production and wholesale sales, along with the U.S. New York Fed Manufacturing Index, at 21:30; and remarks by ECB President Lagarde at 27:10. We will be closely monitoring the upside potential of GBP/JPY, which has hit a new high for the year.

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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