Will the pound, which has fallen against the yen, test lower levels? Market participants are watching price movements during European trading hours with caution.
19.01.2026
- European Consumer Price Index
- Canada: Consumer Price Index
Last weekend, the U.S. dollar weakened against the yen. The USD/JPY pair fell from 158.697 to 157.823. The price declined along the 20-period moving average (MA) on the hourly chart, dropping just below the 200-period SMA. On the 4-hour chart, the candlesticks fell to the 75-period MA, and the RSI dropped from 62 to 43.On the daily chart, the price has fallen just below the 10-day moving average (MA), and during today’s Asian trading session, it briefly dipped below the daily 10-day MA.
Among European currencies, the pound fell against the yen. GBP/JPY fell from 212.281 to 211.383.It declined while being capped by the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, it broke below the 75-period MA support line with a real body candle without pausing, and on the daily chart, it temporarily dipped below the 20-period MA. Additionally, although it opened with a downward gap of about 70 pips during today’s Asian session, it has already completely filled the gap.
Today’s economic indicators include Japanese machine tool orders at 8:50, UK Rightmove house prices at 9:01, Japanese industrial production and the Japanese tertiary industry activity index at 13:30, the Eurozone consumer price index at 19:00, and the Canadian consumer price index at 22:30.Please note that U.S. markets are closed today for a holiday. We should watch for price movements during European trading hours to see if the pound, which has fallen against the yen, will extend its decline.
Author: Keisuke Sakurai
