GBP/JPY surged towards 205.00 on Tuesday, hitting a 16-year high near 204.85 as the pair continued its upward trajectory. The Japanese Yen weakened in the FX markets despite interventions from the Bank of Japan and Japan’s Ministry of Finance.
With limited data releases for both the GBP and JPY on Tuesday, the Guppy had room to climb to new highs, reaching levels not seen since August 2008. The upcoming UK Parliamentary Elections on Thursday could introduce volatility as the Labour Party is expected to secure a majority win.
Looking ahead, Japanese data remains sparse, with Yen traders awaiting the BoJ’s next rate call in July. GBP/JPY maintains a bullish outlook, with the pair set to break the 205.00 handle. Technical indicators suggest a strong upward trend, with the pair trading well above key levels.
The Pound Sterling is the oldest currency and the official currency of the UK, accounting for a significant portion of global FX transactions. The value of the Pound is influenced by monetary policy decisions by the Bank of England and economic indicators such as GDP and employment data. Additionally, the Trade Balance plays a crucial role in determining the strength of the Pound in international markets.