Will the pound, which has risen against the yen, extend its gains during European trading hours? Keep an eye on the direction of the market.

Will the pound, which has risen against the yen, extend its gains during European trading hours? Keep an eye on the direction of the market.

20.10.2025

Last weekend, the U.S. dollar strengthened against the yen. The USD/JPY pair rose from 149.383 to 150.612, rebounding for the first time in four trading days. On the hourly chart, the price rebounded from the -2σ Bollinger Band, and on the 4-hour chart, it is rebounding upward with the 200 EMA acting as support.On the daily chart, the pair has recovered from the 20-day moving average (MA), which it had temporarily dipped below, and is now returning to the area above the 20-day MA.

Among European currencies, the pound rose against the yen. GBP/JPY rose from 200.674 to 202.229. It recovered from the -3σ to the +2σ levels of the hourly Bollinger Bands.On the 4-hour chart, a rebound was observed after the price touched the 200 EMA, and on the daily chart, the candlestick—which had fallen just below the 20 MA—has recovered to a level above the 20 MA. Furthermore, upward price movement has been observed during today’s Asian trading session.

Today’s economic indicators include New Zealand’s third-quarter Consumer Price Index at 6:45, the UK’s Rightmove House Price Index at 8:01, remarks by Bank of Japan Board Member Takada at 12:50, and at 15:00, Germany’sProducer Price Index, at 21:30: Canada’s Industrial Product Prices and Raw Materials Price Index, and at 28:00: remarks by German Bundesbank President Nagel.Other than that, no major U.S. economic indicators or remarks by key officials are scheduled. We’ll be watching to see if the pound, which has risen against the yen, continues to climb during European trading hours.