GBP/JPY is currently trading just above the 206.00 level, failing to reach a new multi-year high earlier this week. The Yen’s weakness has kept the pair at its highest prices in 16 years. Data for the Japanese Yen is limited this week, but market watchers are on the lookout for any intervention from the Bank of Japan due to the Yen’s poor performance against other major currencies.
In the UK, data is mid-tier with Industrial and Manufacturing Production figures expected later in the week. Bank of England policymakers are also scheduled to speak, but no major policy changes are anticipated. Industrial Production in May is forecasted to rebound, while Manufacturing Production is expected to recover from a previous decline.
Technically, GBP/JPY’s bullish momentum is slowing down, with potential for a pullback to the 50-day Exponential Moving Average. However, the long-term trend still favors the bulls, suggesting a rebound from key technical levels in the future.
The Pound Sterling is the oldest currency in the world and the official currency of the United Kingdom. It is heavily influenced by the Bank of England’s monetary policy decisions, particularly in achieving price stability. Economic indicators such as GDP and employment data can impact the value of the Pound Sterling, as well as the Trade Balance which measures a country’s exports and imports.