GBP/JPY Exchange rate

Editors’ Picks

EUR/USD bounces off multi-week lows, regains 1.1100 and above

EUR/USD remained under pronounced downward pressure on Monday, sliding to five-week troughs in the sub-1.1100 region on the back of the strong resurgence of the bid bias in the US Dollar. The Greenback’s strength came after the US and China struck a deal on a 90-day trade truce and agreed to significantly reduce tariff rates.

GBP/USD rebounds from lows, retargets 1.3200

GBP/USD came under heavy pressure on Monday, falling to the 1.3140 zone as the Greenback extended its rally. The US Dollar found renewed strength after the US and China reached an agreement to substantially lower tariffs and implement a 90-day pause, keeping the risk complex on the defensive so far.

Gold meets support around $3,200

Gold opened the week under pronounced selling pressure, with princes slipping back to the $3,200 mark per troy ounce. The decline was largely attributed to a broad improvement in risk sentiment following news that the US and China had reached an agreement to substantially reduce and temporarily suspend reciprocal tariffs.

Five fundamentals: Markets eye trade war, Oil-related geopolitics and three US consumer figures Premium

Sino-American trade relations and other deals remain at the top of the agenda. A deal between the US and Iran and Russia-Ukraine talks could upend Oil markets. US Retail Sales, inflation and consumer sentiment are set to trigger significant moves.

Memecoins on the move: WIF, BOME, and FLOKI post double-digit gains as US-China agree on tariff reduction

Dogwifhat, Book of Meme, and FLOKI extend their double-digit rallies on Monday, adding to last week’s surge. The rally is driven by growing risk-on sentiment in crypto markets after the US and China agreed to major tariff reductions.

Majors

Cryptocurrencies

Signatures

GBP/JPY

The GBP/JPY pair tells the trader how many Japanese Yen (the quote currency) are needed to purchase one British Pound (the base currency). It is known to be a “carry currency cross”, that is a cross which is a vehicle for carry trading (one of today's most popular trading strategies). A carry trade happens when a person sells or borrows an asset with a low-interest rate in order to purchase another asset with a higher interest rate, looking to profit from the underlying interest rate difference. This strategy is heavily used in the foreign exchange market (forex).

HISTORIC HIGHS AND LOWS FOR GBP/JPY

All-time records: Max: 1014.000 on 01/01/1963 - Min: 116.853 on 19/09/2011
Last 5 years: Max: 195.843 on 18/06/2015 - Min: 124.78 on 26/09/2016

* Data as of February 2023

ASSETS THAT INFLUENCE GBP/JPY THE MOST

The GBP/JPY pair can also be impacted by:

Currencies: USD and EUR. This group also includes the following currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, USD/CAD and EUR/JPY
Commodities: Oil.
Bonds: Gilt (debt securities issued by the Bank of England), GJGB10 (Japan Generic Govt 10Y Yield) and T-Note (Treasury Note, a marketable U.S. government debt security).
Indices: FTSE 100 (share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization), Nikkei 225 (stock market index for the Tokyo Stock Exchange), Dow Jones (DJIA, Dow Jones Industrial Average, an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market).

ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE GBP/JPY

The organizations and people that affect the most the moves of the GBP/JPY pair are:

Bank of England (BoE), known to be one of the most effective central banks in the world. It acts as the government's bank and the lender of last resort. It issues currency and, most importantly, it oversees monetary policy (including interest rates). Andrew Bailey became the new Governor of the Bank of England on March 16th, 2020. Her Majesty the Queen has approved the appointment. He is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses.

Bank of Japan (BoJ) that issues statements and decides on the interest rates of the country. Its Governor is currently Kazuo Ueda. The BoJ has been applying very low interest rates for many years and even introduced a negative interest rate in January 2016, in an attempt lift consumer prices, which have been sliding for most of the past 20 years. Falling consumer prices is a concern for the country since they hurt corporate revenues and tend to stop spendings. The Japanese Consumer Price Index (CPI) is a key indicator closely monitored by traders of all JPY-related currency crosses.
UK Government and its Prime Minister, Rishi Sunak who took office in October 2022, a day after becoming leader of the Conservative Party.
Japanese Government and its Prime Minister Shigeru Ishiba, who replaced Fumio Kishida in October 2024..
UK GDP (Gross Domestic Product), the total market value of all final goods and services produced in a country. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the GBP, while a low reading is negative.