- GBP/JPY pumps the brakes as the pair churns near 200.00.
- Thin economic calendar this week allows the Guppy to find balance.
- Hectic data schedule on the cards for next week.
GBP/JPY is cruising through a data-light week, cycling between 200.00 and 199.00 as investors await higher-impact calendar releases from both the UK and Japan. The Volatility-prone pair has found a brief cool spot despite the Guppy holding up over 11% for the year.
This week saw strictly low-impact data releases from the UK and Japan, though investors are keeping a close eye on any statements from the Bank of Japan (BoJ). Policymakers at the Japanese central bank are slowly getting pushed towards making trims to their various easing and bond-buying programs, but a deep-seated fear of a return to stagnant inflation conditions in Japan has kept the BoJ in a hyper-easy policy stance.
A battered Yen has been pushed deeply into the red through 2024 as wide rate differential force the JPY lower across the board, but impending rate cuts from most of the global major central banks is set to ease some pressure and trim the differential, which could give the beleaguered JPY a leg up.
Next week, Japanese Q1 Gross Domestic Product (GDP) figures are due early Tuesday, though investors broadly expect Japanese GDP growth to hold near -0.5% QoQ. On the UK side, fresh labor figures are also due on Tuesday, and the UK is expected to shed -177K jobs in the three months ended April.
GBP/JPY technical outlook
Near-term momentum has drained out of the Guppy as prices slump into the midrange, planted firmly just above the 199.00 handle with the 200-hour Exponential Moving Average (EMA) at 199.33. GBP/JPY hit a record 34-year high at 200.75 in late May, and the pair has steadied after a recent plunge towards 197.00.
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
AUD/USD consolidates near two-week high, looks to US NFP for fresh impetus
AUD/USD holds steady around the 0.6335 area during the Asian session on Friday as traders now await the US NFP report. Bets that the Fed will cut rates further amid concerns over failing US economic growth keep the USD depressed near a multi-month low and act as a tailwind for spot prices, though tariff jitters warrant caution for bulls.
USD/JPY seems vulnerable amid divergent Fed-BoJ expectations; US NFP awaited
USD/JPY languishes near its lowest level since October touched on Thursday amid a bearish USD, led by bets that the Fed could cut rates multiple times in 2025 amid slowing US economic growth. Moreover, the hawkish sentiment surrounding the BoJ's policy outlook underpins the JPY and validates the negative bias for the pair.
Gold price remains depressed ahead of US NFP; trade jitters to limit losses
Gold price trades with negative bias for the second straight day, though a combination of factors continues to act as a tailwind ahead of the crucial US NFP report later this Friday. Rising trade tensions continue to weigh on investors' sentiment.
Crypto AI Tokens: Why FET, NEAR and RNDR could outperform BTC after White House Summit
The White House Crypto Summit is scheduled to hold on Friday. Rather than double-down on BTC, sector-wide price trends show that investors are leaning towards Crypto AI altcoins.
Make Europe great again? Germany’s fiscal shift is redefining the European investment playbook
For years, Europe has been synonymous with slow growth, fiscal austerity, and an overreliance on monetary policy to keep its economic engine running. But a major shift is now underway. Germany, long the poster child of fiscal discipline, is cracking open the purse strings, and the ripple effects could be huge.
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.