- GBP/JPY testing highest bids since August 2008 as Yen flounders.
- Slumping UK data trims Sterling gains, but GBP march continues.
- BoE rate call due Thursday, expected to hold rates steady.
GBP/JPY is holding staunchly on the high side, trading into the 201.00 handle in thin Wednesday action and keeping pinned close to 16-year highs near 201.60. The Guppy trailed into fresh peaks last week and continues to roil close to the top end despite a near-term knockback below 199.00.
UK economic data mostly missed the mark in the front half of the trading week, with headline Consumer Price Index (CPI) inflation and the Retail Price Index both slightly flubbing forecasts. However, GBP traders will be pivoting to face down Thursday’s upcoming Bank of England (BoE) rate call. The BoE’s Monetary Policy Committee (MPC) is broadly expected to vote seven-to-two to keep rates held at 5.25%, with two members of the MPC expected to vote in favor of a rate cut, inline with the previous meeting.
Japanese National Consumer Price Index (CPI) inflation is also due early Friday, with annualized Core National CPI inflation expected to tick upwards to 2.6% from 2.2%. Japanese national-level CPI inflation tends to have a muted effect as the data event is previewed by Tokyo CPI inflation several weeks ahead of time.
Friday will follow up with UK Retail Sales, which are expected to rebound in May, forecast to print at 1.5% MoM versus the previous month’s -2.3% decline. S&P Global Purchasing Managers Index (PMI) activity figures will round out the UK’s economic calendar this week. The UK Manufacturing PMI is expected to tick up to 51.3 from 51.2, wit the Services component expect to make a similar move, forecast to rise to 53.0 from 52.9.
GBP/JPY technical outlook
GBP/JPY pulled itself back upwards after a brief dip below the 200-hour Exponential Moving Average (EMA) at 200.20, but the pair is still trudging through chart paper below last week’s fresh 16-year peak above 201.60.
Bullish momentum is firmly planted front and center, with GBP/JPY trading well north of the 200-day EMA rising towards 190.00. The pair has trading on the high side of the long-term moving average since bouncing from the key technical indicator at the beginning of 2024, and the Guppy is up 12% for the year.
GBP/JPY hourly chart
GBP/JPY daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

EUR/USD extends rally to beyond 1.1100 on broad USD weakness
EUR/USD gathered bullish momentum and touched a fresh multi-month high above 1.1100 in the European session on Thursday. The pair benefits from the intense selling pressure surrounding the US Dollar after US President Trump unveiled aggressive tariffs on the "Liberation Day." Markets await mid-tier US data releases.

GBP/USD surges to multi-month tops near 1.3200 ahead of US data
GBP/USD is extending its upbeat momentum toward 1.3200 in European trading on Thursday as the US Dollar slumps to a fresh YTD low. Worries about a tariff-driven US economic slowdown lift Fed rate cut bets and weigh on the Greenback. The focus now remains on the US data for further impetus.

Gold retreats toward $3,100 from all-time peak
Gold price extends its steady intraday pullback from the all-time peak touched this Thursday, though it manages to hold above the $3,100 mark in the European session. Bullish traders opt to take some profits off the table and lighten their bets around the commodity amid slightly overbought conditions.

SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX
Solana (SOL) gains nearly 2% in the last 24 hours and trades at 118.28 at the time of writing on Thursday. A Decentralized Exchange (DEX) and a meme coin launchpad built on the Solana blockchain have waged a war for users and compete for the trade volume on the chain.

Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.