GBP/JPY continues slow grind back into decade-plus highs
The GBP/JPY pair is currently testing its highest bids since August 2008 as the Yen struggles. Despite some slumping UK data affecting Sterling gains, the GBP continues its march. The Bank of England (BoE) is expected to hold rates steady at 5.25% during Thursday’s rate call, with two members likely to vote for a rate cut.
GBP/JPY is trading near 16-year highs, hovering around 201.00 and maintaining its position close to 201.60. Even though UK economic data has been slightly below expectations, traders are looking ahead to the BoE rate decision. Japanese CPI inflation data is also due on Friday, with an expected increase to 2.6%.
On Friday, UK Retail Sales are forecasted to rebound in May, with a 1.5% MoM increase expected. Additionally, S&P Global Purchasing Managers Index (PMI) figures for manufacturing and services are anticipated to show slight improvements.
From a technical perspective, GBP/JPY is showing bullish momentum, trading above the 200-day EMA and up 12% for the year. The pair has been consistently above the long-term moving average since the beginning of 2024. Charts show a brief dip below the 200-hour EMA but a rebound above it, maintaining its position near the 16-year peak.
Overall, GBP/JPY remains strong despite some economic data setbacks, with traders closely watching central bank decisions and upcoming data releases.