Should we focus on the downside potential of the GBP/JPY pair, which has seen a notable decline?

Should we focus on the downside potential of the GBP/JPY pair, which has seen a notable decline?

18.02.2026

In the U.S. currency market yesterday, the dollar fluctuated against the yen after the February New York Fed Manufacturing Index, released yesterday, fell to 7.1 from 7.7 the previous month.The USD/JPY pair traded between 152.701 and 153.927. On the hourly chart, prices fluctuated between the -3σ and +3σ lines of the Bollinger Bands. On the 4-hour chart, the pair continues to trade sideways just below the 20-period moving average (MA). On the daily chart, while the decline appears to be stalling near the support line of the 200-period exponential moving average (EMA), resistance at higher levels remains strong.

Among European currencies, the pound fell sharply against the yen. The GBP/JPY pair dropped from 209.476 to 207.229. A downtrend has emerged along the -2σ line of the hourly Bollinger Bands, and on the 4-hour chart, the RSI has fallen to 30, indicating oversold conditions. On the daily chart, the pair hit a new low for the year with a bearish engulfing candle. The pound has weakened to levels not seen since December of last year.

Today’s schedule includes the Australian Westpac Leading Index at 8:30, Japan’s customs-based trade balance at 8:50, the Australian Q4 Wage Index at 9:30, the RBNZ policy rate announcement and statement at 10:00, RBNZ Governor Breman’s press conference at 11:00, the UK Consumer Price Index and Retail Price Index at 16:00,UK Producer Price Index, 5:00 PM South African Consumer Price Index, 9:00 PM US MBA Mortgage Applications Index, 10:30 PM US Housing Starts, US Durable Goods Orders, 11:15 PM US Industrial Production, 3:00 AM US 20-Year Treasury Auction, and 4:00 AM US FOMC Minutes release.We would like to focus on the downside potential of GBP/JPY, which has seen a notable decline.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed