GBP/JPY reached a new 16-year high of 203.39 as the Yen continued to weaken. Japanese Retail Trade saw a slight increase, with Tokyo CPI inflation data expected next. The UK is set to release a revision of first-quarter GDP figures, but little change is anticipated.
Despite the uptick in Japanese Retail Sales, the Yen remains under pressure as traders await the Tokyo CPI inflation data. The UK’s GDP revision is not expected to show significant changes, with Q1 GDP likely to remain at 0.6%.
The Core Tokyo CPI is projected to rise slightly to 2.0% YoY in June, but this may not be enough to prompt the Bank of Japan to adjust its monetary policy. The Yen’s weak position is unlikely to change, despite threats of intervention in FX markets by Japan’s Ministry of Finance.
GBP/JPY has been on a strong bullish trend, reaching new highs for five consecutive days. The pair has not retraced to the 200-day EMA since the beginning of 2024, showing consistent bullish momentum.
On the hourly chart, GBP/JPY continues to climb steadily, while the daily chart reflects the pair’s upward trajectory over the past few days.