- GBP/JPY hit a new 16-year peak of 201.32 on Thursday.
- JPY traders are buckling down ahead of the BoJ’s latest rate call.
- Sterling markets are shrugging off misses in UK data.
GBP/JPY tested into a fresh 16-year high above 201.00 on Thursday, tipping into 201.32 before falling back into the previous day’s range as Guppy traders jostle for position ahead of the Bank of Japan’s (BoJ) latest rate call and Monetary Policy Statement. The BoJ’s latest rate statement is due early on Friday, and Sterling traders will be looking ahead to next week’s latest UK Consumer Price Index (CPI) inflation update.
UK data has broadly missed the mark this week, with an unexpected surge in unemployment claims and a sharper-than-forecast contraction in industrial activity. However, GBP traders have broadly shrugged off the bleaker economic outlook for the UK to bolster the Guppy as Japan’s hypereasy monetary policy stance keeps the Yen unsupported against its major currency peers.
The BoJ is broadly expected to hold rates at 0% early Friday, and investors aren’t expecting much movement from the Japanese central bank in the way of tightening monetary policy. The economic calendar remains thin on the UK side, leaving GBP traders to sit and wait for next Wednesday’s CPI inflation print, followed by Thursday’s rate call from the Bank of England (BoE). The BoE last voted 7-to-2 to keep interest rates steady at 5.25%, with only two Monetary Policy Committee (MPC) members voting for a rate cut.
GBP/JPY technical outlook
GBP/JPY peaked at a fresh 16-year high of 201.32 early Thursday before quickly pulling back to the 200-hour Exponential Moving Average (EMA) at 199.89. The pair is still tilted firmly into bullish territory, but downside pulses are keeping the pair in a choppy rising consolidation pattern.
The Guppy closed five of the last six trading days in the green, and is showing signs of bullish exhaustion. The pair could be poised for a fresh drop to the 50-day EMA at 196.56, though GBP/JPY remains deep in bull country, trading above the 200-day EMA at 188.91.
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 accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
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.