|

British Pound holds above one-week low vs JPY; intervention risks cap further gains

  • GBP/JPY attracts some buyers after touching a one-week trough earlier this Monday.
  • Intervention fears and BoJ rate hike bets underpin the JPY, capping gains for the cross.
  • The UK political turmoil further warrants caution before positioning for further gains.

The GBP/JPY cross stages a modest recovery from over a one-week low, around the 213.30 region touched earlier this Monday, and sticks to modest intraday gains through the first half of the European session. Spot prices, however, remain below the 214.00 mark, warranting caution for aggressive bulls amid mixed cues.

The Japanese Yen (JPY) continues with its struggle to attract any meaningful buyers amid worries that Japan's economy will remain under strains due to the Middle East conflict and the continued disruption of supplies through the Strait of Hormuz. The British Pound (GBP), on the other hand, draws some support from a modest US Dollar (USD) downtick. These turn out to be key factors acting as a tailwind for the GBP/JPY cross.

The JPY bears, however, seem hesitant amid speculations that Japanese authorities will step in again to prop up the domestic currency. Moreover, data released earlier today showed that Japan’s economy expanded by 0.5% in the first quarter, outpacing consensus estimates and bolstering bets that the Bank of Japan (BoJ) will raise interest rates at its June 15-16 meeting. This helps limit JPY losses and might cap the GBP/JPY cross.

Meanwhile, UK Prime Minister Keir Starmer's authority has been severely shaken following the resignations of junior ministers, fueling political uncertainty. This, in turn, might continue to undermine the GBP and contribute to keeping a lid on the GBP/JPY cross. In the absence of any relevant market-moving economic releases, the fundamental backdrop suggests that any further intraday move is likely to be solid into and remain limited.

Japanese Yen Price Last 30 days

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies last 30 days. Japanese Yen was the strongest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD1.75%1.68%2.08%2.05%2.29%2.34%2.15%
EUR-1.75%-0.09%0.33%0.32%0.45%0.55%0.40%
GBP-1.68%0.09%0.45%0.41%0.62%0.68%0.49%
JPY-2.08%-0.33%-0.45%-0.04%0.04%0.18%0.10%
CAD-2.05%-0.32%-0.41%0.04%0.05%0.23%0.10%
AUD-2.29%-0.45%-0.62%-0.04%-0.05%0.15%-0.04%
NZD-2.34%-0.55%-0.68%-0.18%-0.23%-0.15%-0.25%
CHF-2.15%-0.40%-0.49%-0.10%-0.10%0.04%0.25%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Editor's Picks

GBP/USD defends 1.3300 after strong UK PMI data

Following Thursday's sharp decline, GBP/USD clings to small gains above 1.3300 in the American session on Friday, supported by the upbeat UK Retail Sales and July PMI data. Nevertheless, the pair's upside remains capped as investors cling to a cautious stance amid a further escalation of tensions in the Middle East. The US July PMI data failed to trigger relevant price action.

EUR/USD remains below 1.1400 after mixed US PMIs

EUR/USD pressures daily lows below the 1.1400 mark in the American session on Friday. Mixed S&P Global PMIs, as manufacturing output contracted while services activity expanded in July, triggered no relevant market reaction. The focus remains in Middle East developments and inflation-related concerns.

Gold holds above $4,050 but momentum still missing

Gold builds on its modest intraday bounce and climbs above the $4,050 level on Friday, hitting a fresh daily high amid a modest US Dollar pullback. The fundamental backdrop, however, warrants some caution before confirming that the pullback from an over two-week high, touched on Wednesday, has run its course and positioning for any meaningful upside.

Ethereum: Derivatives interest in ETH improves, but signs of caution remain

Ethereum is hovering slightly below the $1,900 level, down 3% on Thursday following a slight expansion in derivatives interest. The top altcoin's open interest has increased to 14.60 million ETH, marking a 600K ETH increase over the past two days and its highest level since June 7.

XRP retreats as ETF interest cools
Ripple (XRP) slides toward the short-term $1.10 support on Friday, as broader crypto market sentiment weighs on crypto assets. The sell-off mainly stems from fears of inflation in the United States (US) amid the ongoing war in the Middle East and rising Oil prices.
US Dollar mid-year outlook: Exceptional currency, exceptional risks?
The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.