With the pound having risen sharply against the yen, all eyes are on its price movements during European trading hours to see if it can extend its gains

With the pound having risen sharply against the yen, all eyes are on its performance during European trading hours to see if it can extend its gains

23.01.2026

In yesterday’s U.S. currency trading, the U.S. dollar was the weakest performer alongside the Japanese yen. The EUR/USD pair rose from 1.1670 to 1.1755, rebounding as it found support at the 200-period EMA on the hourly chart. The 4-hour chart showed a similar price movement, and on the daily chart, the pair has been rising from the 20-period MA. Although a pullback has been observed during today’s Asian session, the downside has been limited, and the U.S. dollar continues to weaken.

Among European currencies, the pound rose against the yen. The GBP/JPY pair climbed from 212.375 to 213.971. An uptrend has emerged along the 20-period moving average on the hourly chart. On the 4-hour chart, a band walk is visible along the +2σ line of the Bollinger Bands, and on the daily chart, the price is in the process of making new highs with a bullish engulfing candle. Furthermore, the pair has continued to hit new highs during today’s Asian trading session and has already broken into the 214 yen range.

Today’s economic indicators include Japan’s national consumer price index at 8:30 a.m., the Bank of Japan’s policy rate decision and statement shortly after noon, a press conference by BOJ Governor Ueda at 3:30 p.m., UK retail sales at 4:00 p.m., France’s manufacturing and non-manufacturing PMIs at 5:15 p.m., Germany’s manufacturing and non-manufacturing PMIs at 5:30 p.m., and the Eurozone’s manufacturing andNon-Manufacturing PMI, 6:30 PM UK Manufacturing/Non-Manufacturing PMI, 7:00 PM Eurozone ECB President Lagarde’s remarks, 10:30 PM Canada Retail Sales, 11:45 PM US Manufacturing/Non-Manufacturing PMI, and 12:00 AM US University of Michigan Consumer Sentiment Index and US Leading Economic Index.We will be closely watching price movements during European trading hours to see if the pound, which has risen significantly against the yen, will extend its gains.