Should investors be wary of the upside potential for GBP/JPY, which has risen against the yen and hit a new high for the year?

Should investors be wary of the upside potential for GBP/JPY, which has risen against the yen and hit a new high for the year?

08.10.2025

In yesterday's U.S. currency trading, 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 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 climbed from 202.152 to 204.089. On the hourly chart, the price rose from the -3σ to the +3σ Bollinger Band. On the 4-hour chart, the uptrend along the 10-period moving average 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 Bollinger Band.

Today’s economic indicators include Japan’s Monthly Labor Survey at 8:30, Japan’s Balance of Payments at 8:50, Japan’s Tankan Survey at 14:00, Germany’s Industrial Production at 15:00, the U.S. MBA Mortgage Applications Index at 20:00, and at 22:00, remarks by U.S. Federal Reserve Board Member Musalem:St. Louis Fed President’s remarks at 10:30 PM, U.S. Fed Chair Barr’s remarks at 10:30 PM, U.S. weekly crude oil inventories at 11:30 PM, UK MPC Member Pill’s remarks at 12:00 AM, U.S. 10-year Treasury auction at 2:00 AM, and the release of the U.S. FOMC minutes at 3:00 AM.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.