The GBP/JPY pair has reached multi-year highs as the Japanese Yen continues to weaken in the foreign exchange market. The Bank of Japan (BoJ) may intervene in currency markets to support the struggling Yen, with discussions expected at their policy meeting on Friday.
Japan’s Tokyo Consumer Price Index (CPI) inflation is set to be released on Friday, with expectations that it will remain steady at 2.6% for the year ending in April. Core-core Tokyo CPI inflation, which excludes volatile food and energy prices, is predicted to decrease slightly to 2.7% from the previous 2.9%.
The BoJ will also announce its latest Interest Rate Decision and Monetary Policy Statement on Friday, where investors will be watching for any signs of intervention in the currency markets. Additionally, any changes to the BoJ’s bond-buying program will be closely monitored.
The GBP/JPY pair has broken out of its recent range and is approaching the 195.00 level, hitting a new multi-year high. Further bullish momentum could push the pair to even higher levels, while any pullbacks may find support at 192.70. The pair is on track to close higher for the third consecutive day, with daily candles comfortably above the 200-day Exponential Moving Average at 185.08.