GBP/JPY extends winning spell to 196.00 after BoJ keeps interest rates unchanged


  • GBP/JPY advances to 196.00 amid uncertainty over BoJ’s interest rate outlook.
  • The BoJ sees inflation rising in the coming years but has projected weak economic growth.
  • UK’s firm Services PMI has deepened fears of persistent inflationary pressures.

The GBP/JPY pair extends its winning streak for the fourth trading session on Friday and rises to a historic high of 196.00. The cross strengthens after the interest rate decision from the Bank of Japan (BoJ) came in-line with market expectations.

The BoJ kept interest rates steady in the range of 0%- 0.01%. The monetary policy statement indicated that the central bank remains on track for policy normalization. The BoJ said, “It will adjust the degree of monetary easing if the underlying inflation rate rises,” instead of currently buying about 6 trillion JPY worth of Japanese Government Bonds per month.

For the economic and inflation outlook, the BoJ has forecasted weak growth and sees inflation rising in coming years. This has raised doubts among investors, as higher inflation could not be achieved by weak growth. It has also deepened uncertainty over the scope of policy tightening.

Meanwhile, softer than expected, Tokyo’s annual Consumer Price Index (CPI) data for April has deepened doubts over Japan’s inflation, which remains above the 2% target. The annual CPI rose at a slower pace of 1.8% from expectations and the prior reading of 2.6%. Tokyo CPI excluding Fresh Food softened to 1.6% from the consensus of 2.2% and the former reading of 2.4%.

On the United Kingdom front, the Pound Sterling performs strongly as strong Services PMI figures have deepened fears of persistent inflation. Higher Services PMI boosts employment and wage growth, which could stall progress in price pressures easing to the desired rate of 2%. This will prompt fears of UK interest rates remaining higher.

GBP/JPY

Overview
Today last price 196.13
Today Daily Change 1.35
Today Daily Change % 0.69
Today daily open 194.78
 
Trends
Daily SMA20 191.97
Daily SMA50 190.98
Daily SMA100 187.84
Daily SMA200 185.8
 
Levels
Previous Daily High 194.95
Previous Daily Low 193.36
Previous Weekly High 192.84
Previous Weekly Low 190.3
Previous Monthly High 193.54
Previous Monthly Low 187.96
Daily Fibonacci 38.2% 194.34
Daily Fibonacci 61.8% 193.97
Daily Pivot Point S1 193.77
Daily Pivot Point S2 192.77
Daily Pivot Point S3 192.18
Daily Pivot Point R1 195.37
Daily Pivot Point R2 195.96
Daily Pivot Point R3 196.96

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD consolidates below 1.0950 ahead of ECB policy announcements

EUR/USD consolidates below 1.0950 ahead of ECB policy announcements

EUR/USD turns sideways below 1.0950 in Thursday’s European session after rallying to a fresh four-month high on Wednesday. The pair trades with caution, as investors shift to the sidelines ahead of the European Central Bank policy meeting, which will be announced at 12:15 GMT.

EUR/USD News

GBP/USD stays in daily range near 1.3000 after UK jobs data

GBP/USD stays in daily range near 1.3000 after UK jobs data

GBP/USD treads water at around 1.3000 in the European session, holding its retreat from the 2024-high it set at 1.3045 on Wednesday. The UK data showed that the ILO Unemployment Rate held steady at 4.4% in the three months to May, as forecast, failing to trigger a reaction.

GBP/USD News

Gold price remains stronger due to rising expectations of Fed rate cuts

Gold price remains stronger due to rising expectations of Fed rate cuts

Gold price (XAU/USD) edges higher to near $2,470 per troy ounce on Thursday, remaining close to record highs amid growing optimism that the Federal Reserve (Fed) will reduce rates in September.

Gold News

Worldcoin price sets for a rally following the breakout of the descending trendline

Worldcoin price sets for a rally following the breakout of the descending trendline

Worldcoin price faces a descending trendline on Thursday; a breakout signals a bullish move. On-chain data shows that WLD's daily active addresses are increasing, signaling greater blockchain usage. 

Read more

ECB preview: Incoming data since June unlikely to shift the policy view

ECB preview: Incoming data since June unlikely to shift the policy view

Since the last ECB meeting five weeks ago in June, only a limited amount of new economic data has become available, and this data is unlikely to have significantly changed the ECB's perspective on the economy and consequently its policy stance.

Read more

Forex MAJORS

Cryptocurrencies

Signatures