The GBP/JPY pair reached a new multi-year high of 202.73 on Tuesday, marking the sixth consecutive month of gains for the Guppy. The Japanese Yen continues to weaken against other currencies in the FX markets.
The Bank of Japan remains committed to its hyper-easy monetary policy despite attempts to strengthen the Yen through verbal interventions and threats of market intervention. However, short pressure on the JPY markets persists.
The upcoming economic calendar shows a quiet start to the week for GBP/JPY, with more impactful events expected in the latter half. Japanese inflation and UK GDP figures are on the agenda.
On Thursday, Japanese Large Retail Sales data is expected to show a slight decline, while the Bank of England will release its latest Financial Stability Report. Friday will see the release of Japan’s Tokyo Consumer Price Index and the UK’s first-quarter GDP revision.
Technically, GBP/JPY has been trading well above the 200-day Exponential Moving Average and has seen significant gains in 2024. The pair is approaching the 204.00 mark, with markets monitoring for any potential interventions from the Bank of Japan.
Overall, GBP/JPY’s upward momentum continues as the Japanese Yen weakens, with the pair showing resilience and potential for further gains in the near future.