Should We Be Wary of the Upside Potential for GBP/JPY, Which Has Risen Against the Yen and Hit a New Year-to-Date High?
08.10.2025
- Japan Economic Watchers Survey
- U.S. MBA Mortgage Applications Index
In the U.S. currency market the previous day, the U.S. dollar rose against the Australian dollar. The AUD/USD pair fell from 0.6624 to 0.6578.On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price has fallen to just below the 200-period simple moving average (SMA), and on the daily chart, it is barely finding support at the 20-period MA. Note that during today’s Asian trading session, the price is in the process of breaking below the daily 20-period MA, so we should pay close attention to price movements during U.S. trading hours.
Among European currencies, the pound rose against the yen. The GBP/JPY pair rose from 202.152 to 204.089. On the hourly chart, the price moved from the -3σ to the +3σ levels of the Bollinger Bands. On the 4-hour chart, the uptrend along the 10-period moving average (MA) continues, and on the daily chart, the RSI has reached 70.On the weekly chart, the pair has hit a new year-to-date high near the +3σ level of the Bollinger Bands.
Today’s economic indicators include Japan’s Monthly Labor Survey at 8:30, Japan’s Balance of Payments at 8:50, Japan’s Economic Watchers Survey at 14:00, Germany’sIndustrial Production, 20:00 U.S. MBA Mortgage Applications Index, 22:00 U.S. Remarks by Musalem, President of the St. Louis Fed, 22:30 U.S. Remarks by Fed Chair Bar, 23:30 U.S. Weekly Crude Oil Inventories,at 24:00: UK – Remarks by MPC Member Pill; at 26:00: US – 10-Year Treasury Auction; and at 27:00: US – Release of FOMC Minutes. We should remain highly vigilant regarding the upside potential for GBP/JPY, which has risen against the yen and hit a new year-to-date high.
Author: Keisuke Sakurai
