The GBP/JPY pair continues to climb to multi-year highs, with the Japanese Yen weakening across the board. The Bank of Japan’s reaffirmation of its monetary policy stance has led to a significant decline in the Yen’s value.
GBP/JPY reached levels above 197.00 for the first time since September 2008, as the BoJ’s decision to maintain its easy monetary policy sparked a widespread sell-off of the Yen. BoJ Governor Kazuo Ueda’s lack of action on exchange rates, inflation, and interest rate guidance disappointed markets.
Looking ahead, the UK has a light economic calendar, while Japan’s Retail Sales figures are due early next week. Retail Trade in Japan is expected to show a decrease to 2.2% growth for the year ending in March.
On a technical note, the GBP/JPY pair is trading at 16-year highs, with the Guppy breaking into bullish territory above 197.00. The pair has gained 10.2% from its early 2024 bounce off the 200-day EMA near 180.00. This marks the fourth consecutive month of gains, with the pair up over 50% from its 2020 lows near 130.00.