British Pound struggles to lure buyers amid UK politics as intervention fears support JPY
- GBP/JPY fluctuates between tepid gains and minor losses amid a combination of diverging forces.
- A softer USD benefits the GBP, though the UK political turbulence keeps a lid on any further gains.
- Intervention fears and the BoJ’s hawkish stance support the JPY, capping the upside for spot prices.
The GBP/JPY cross struggles to capitalize on the previous day's modest recovery gains and seesaws between tepid gains/minor losses through the early European session on Friday. Spot prices currently trade just below mid-213.00s, nearly unchanged for the day amid mixed fundamental cues.
The British Pound (GBP) benefits from a modest US Dollar (USD) pullback from its highest level since May 2025 and acts as a tailwind for the GBP/JPY cross. However, the UK political crisis holds back the GBP bulls from placing aggressive bets. Adding to this, speculations that authorities will step in again to prop up the Japanese Yen (JPY) contribute to capping the upside for the currency pair.
UK Prime Minister Keir Starmer announced his resignation on June 22 after mounting pressure within the Labour Party. Labour will now begin the process of choosing a new leader and wants the process to be completed before the Parliament reconvenes in September. In the meantime, a leadership vacuum might continue to undermine the GBP, warranting some caution for the GBP/JPY bulls.
Meanwhile, Japan's Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent agreed to take steps on currencies if necessary. Also, Japan’s Chief Cabinet Secretary Minoru Kihara said on Tuesday that he will take appropriate action against the foreign exchange moves if needed. This, along with a hawkish Bank of Japan (BoJ), supports the JPY and keeps a lid on the GBP/JPY cross.
The Summary of Opinions from the BoJ's June meeting showed that policymakers debated mounting inflation risks, with some calling for faster rate increases to raise borrowing costs to near levels deemed neutral to the economy. Adding to this, the Tokyo Consumer Price Index (CPI) report indicated that inflation in Japan was now picking up, endorsing the BoJ’s stance to further tighten the policy.
The aforementioned diverging forces, in turn, make it prudent to wait for strong follow-through buying before confirming that the GBP/JPY cross has formed a near-term bottom and positioning for any meaningful appreciation. Bearish traders, on the other hand, might wait for a sustained break and acceptance below the 100-day Simple Moving Average (SMA) before placing bets for deeper losses.
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 | -0.06% | -0.03% | -0.10% | -0.05% | 0.22% | 0.01% | -0.18% | |
| EUR | 0.06% | 0.02% | -0.02% | 0.04% | 0.28% | 0.04% | -0.12% | |
| GBP | 0.03% | -0.02% | -0.02% | -0.01% | 0.27% | 0.01% | -0.14% | |
| JPY | 0.10% | 0.02% | 0.02% | 0.05% | 0.31% | 0.07% | -0.10% | |
| CAD | 0.05% | -0.04% | 0.00% | -0.05% | 0.27% | 0.03% | -0.16% | |
| AUD | -0.22% | -0.28% | -0.27% | -0.31% | -0.27% | -0.22% | -0.39% | |
| NZD | -0.01% | -0.04% | -0.01% | -0.07% | -0.03% | 0.22% | -0.18% | |
| CHF | 0.18% | 0.12% | 0.14% | 0.10% | 0.16% | 0.39% | 0.18% |
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.
