British Pound recovers from over one-week low vs weaker JPY; GBP/JPY retakes 212.00

GBP/JPY attracts some buyers following an intraday dip to over a one-week low on Monday.
Economic risks stemming from Middle East tensions undermine the JPY and support the cross.
A modest USD pullback benefits the GBP and further contributes to the short-covering bounce.

Haresh Menghani FXStreet

The GBP/JPY cross stages a modest recovery from a one-and-a-half-week trough, set earlier this Monday, and retakes the 212.00 mark during the early European session. Spot prices, for now, seem to have snapped a two-day losing streak, with bulls now looking to conquer the 100-day Simple Moving Average (SMA) support breakpoint amid a combination of supporting factors.

The Japanese Yen (JPY) is seen underperforming on the back of growing economic concerns due to rising Middle East tensions and continued disruptions to energy supplies through the critical Strait of Hormuz. The British Pound (GBP), on the other hand, benefits from a modest US Dollar (USD) pullback from its highest level since April 7 and prompts some intraday short-covering around the GBP/JPY cross.

However, domestic political uncertainty might keep a lid on further GBP gains. In fact, calls for UK Prime Minister Sir Keir Starmer to step down have been rising following the ruling Labour Party's hefty losses in the local elections. Moreover, UK Health Minister Wes Streeting's resignation last Thursday points to a deepening crisis within the party, warranting caution before placing bullish bets on the GBP/JPY cross.

Furthermore, speculations that Japanese authorities will step in again to prop up the domestic currency make it prudent to wait for strong follow-through buying before confirming that the recent corrective decline has run its course. Traders now look to the UK monthly employment details on Tuesday. This will be followed by the latest consumer inflation figures on Wednesday, which will provide a fresh impetus to the GBP.

Japanese Yen Price Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Australian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.08%	-0.19%	0.11%	-0.04%	0.03%	-0.14%	-0.16%
EUR	0.08%		-0.12%	0.18%	0.03%	0.09%	-0.07%	-0.09%
GBP	0.19%	0.12%		0.30%	0.18%	0.21%	0.05%	0.03%
JPY	-0.11%	-0.18%	-0.30%		-0.19%	-0.10%	-0.30%	-0.29%
CAD	0.04%	-0.03%	-0.18%	0.19%		0.07%	-0.10%	-0.11%
AUD	-0.03%	-0.09%	-0.21%	0.10%	-0.07%		-0.15%	-0.15%
NZD	0.14%	0.07%	-0.05%	0.30%	0.10%	0.15%		-0.01%
CHF	0.16%	0.09%	-0.03%	0.29%	0.11%	0.15%	0.00%

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

FXStreet

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

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