The GBP/JPY pair made a recovery to familiar highs as the Japanese Yen weakened. This came after Japan’s GDP growth for the first quarter contracted faster than expected, with a -0.5% contraction compared to the market forecast of -0.4%. Traders are now looking ahead to next week’s UK CPI inflation update and Bank of England Governor Andrew Bailey’s speech for clues on the BoE’s possible path towards rate cuts.
On the technical side, GBP/JPY bounced back near the 197.00 handle after finding support at the 200-hour Exponential Moving Average around 195.50. Despite a recent pullback, bulls are pushing the Yen lower against the GBP.Charts show the pair’s movements on both hourly and daily timeframes.