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

Should we focus on the downside potential of GBP/JPY, 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. Prices fluctuated within the range of the hourly Bollinger Bands from -3σ to +3σ. On the 4-hour chart, the pair continues to trade sideways just below the 20-day moving average (MA), while on the daily chart, prices have found support near the 200-day exponential moving average (EMA) but are facing resistance at higher levels.

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 Price Index at 9:30, the RBNZ policy rate 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, 17:00 South African Consumer Price Index, 21:00 US MBA Mortgage Applications Index, 22:30 US Housing Starts and US Durable Goods Orders, 23:15 US Industrial Production, 27:00 US 20-Year Treasury Auction, and 28:00 US FOMC Minutes are scheduled.We would like to focus on the downside potential of GBP/JPY, which has seen a notable decline.