Thursday saw GBP/JPY climb, rising past 202.50 after an initial dip in Asia that put forex traders in pause mode. They are now waiting for key UK economic data before making their next moves.
Given that recent job figures weren’t great, disappointing growth data may nudge the Bank of England toward further rate cuts. Consequently, the pound could struggle—perhaps even fall again against the yen.
Meanwhile, there is an anticipation that Japan’s central bank might lift interest rates once again this year, which will give strength to the yen. However, it is not certain, as the political unrest in Japan might make it more difficult for the bank to act quickly. It will help the pound’s strength against the Yen.
Despite gains, experts aren’t yet convinced prices in GBP/JPY forex trading will consistently rise, and folks in forex trading might want to see more robust purchases happen first before anticipating further increases. However, should values fall—and stay beneath 201.50—one can expect potential losses to grow.
While everyone waits for news about the UK economy, the British pound’s value in relation to the Japanese yen isn’t doing much at the moment. Traders are eager to learn how this economic snapshot will affect currency transactions.
