The Bank of Japan (BoJ) is rumored to have intervened in the FX markets, although there has been no official confirmation. The GBP/JPY pair is slowly climbing back up after experiencing a 700-pip drop earlier this week. Data remains scarce for both the UK and Japan during this time.
GBP/JPY is currently making its way back up the charts, reaching levels above 197.00 after a significant fall from 34-year highs of 200.60. Despite ongoing rumors of BoJ intervention to support the struggling Japanese Yen, buyers are showing interest in the Guppy.
Reports suggest that the BoJ injected ¥5.5 trillion into currency markets following discrepancies in market forecasts and the BoJ’s reported current account. Investors are anticipating the release of the latest Monetary Policy Meeting Minutes from the BoJ on Thursday, hoping for indications of a shift away from the current ultra-easy monetary policy stance towards raising interest rates.
Despite the recent decline, GBP/JPY is showing signs of bullish momentum as it tests levels above 197.00 and targets the key resistance at 200.60. The pair remains up nearly 10% in 2024 and continues to stay in bullish territory after a positive bounce from the 200-day Exponential Moving Average (EMA) earlier in the year.
Charts show the hourly and daily performance of the GBP/JPY pair, reflecting the ongoing market trends and potential levels of support and resistance.