empty
10.02.2025 06:55 PM
GBP/JPY: Analysis and Forecast

This image is no longer relevant

The GBP/JPY pair is exhibiting a moderate intraday recovery, rising from levels last seen in September of last year and climbing above the key psychological level of 189.00, thereby breaking a three-day losing streak.

The recent tariff threats from U.S. President Donald Trump have reignited fears that Japan could also become a target for new trade duties, which is weighing on the yen and prompting some short covering in GBP/JPY. However, hawkish expectations from the Bank of Japan (BoJ) and concerns over a potential global trade war are preventing bears from aggressively entering safe-haven positions in the yen.

Bank of Japan's Director-General for Monetary Affairs, Kazuhiro Masaki, stated that the central bank will continue raising interest rates if core inflation reaches the 2% target. This view is supported by rising real wages in Japan for the second consecutive month, reinforcing the case for further monetary tightening by the BoJ.

At the same time, the Bank of England's outlook appears far less optimistic, highlighting the widening divergence in monetary policies between the two central banks. The BoE cut its benchmark interest rate by 25 basis points last week and downgraded its growth forecast for 2025. Additionally, BoE Governor Andrew Bailey hinted at further rate cuts this year, which could limit GBP/JPY's upward potential.

With no significant economic data today to confirm whether GBP/JPY has found a bottom, traders should wait for a strong buying signal before committing to long positions. A key event to watch will be BoE Governor Andrew Bailey's speech on Tuesday, which could significantly impact the British pound and provide fresh impetus for GBP/JPY.

And from a technical point of view, oscillators on the daily chart remain deeply in negative territory, reinforcing a bearish outlook for the GBP/JPY pair.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Overview – May 14: Only the Trade Deal Matters

On Tuesday, the GBP/USD currency pair also ended what could only be called disgrace — its decline. On Monday, the U.S. dollar strengthened quite well following a successful first round

Paolo Greco 03:52 2025-05-14 UTC+2

EUR/USD Overview – May 14: The Music Didn't Last Long

The EUR/USD currency pair experienced upward movement for most of Tuesday. One gets used to good news quickly, and the market expected further strengthening of the U.S. dollar. We anticipated

Paolo Greco 03:52 2025-05-14 UTC+2

EUR/USD. And Then They Woke Up: Market Euphoria Over the U.S.-China Trade Truce Fades

The currency market's initial euphoria following the announcement of a temporary trade truce between the U.S. and China has now faded. The early optimism has given way to the sobering

Irina Manzenko 01:23 2025-05-14 UTC+2

Inflation Does the Dollar a Bearish Disservice

One of the few indicators the market occasionally pays attention to is U.S. inflation. After Donald Trump introduced trade tariffs, economists immediately started discussing rising inflation. This conclusion is logical

Chin Zhao 01:14 2025-05-14 UTC+2

The Euro Prepares for Retaliation

Man proposes, God disposes. After the White House imposed strict tariffs on America's Independence Day, there was much discussion about rising inflation and a slowing U.S. economy. However, instead

Marek Petkovich 00:18 2025-05-14 UTC+2

USD/CHF. Analysis and Forecast

The USD/CHF pair is pulling back from the monthly high reached yesterday. This retreat is driven by a technical correction following a strong upward move. The U.S. Dollar Index, which

Irina Yanina 18:30 2025-05-13 UTC+2

USD/CAD. Analysis and Forecast

Today, the USD/CAD pair continues its five-day rally, trading near the key psychological level of 1.4000, where it is encountering resistance ahead of the release of the U.S. Consumer Price

Irina Yanina 18:26 2025-05-13 UTC+2

EUR/JPY. Analysis and Forecast

The EUR/JPY pair is losing slight ground, holding losses below 164.40 following the release of the ZEW Economic Sentiment Surveys for Germany and the Eurozone. In May, Germany's ZEW Economic

Irina Yanina 18:24 2025-05-13 UTC+2

EUR/USD. Analysis and Forecast

Today, the EUR/USD pair is showing signs of recovery but continues to face challenges as the U.S. dollar strengthens amid progress in trade negotiations between the United States and China

Irina Yanina 11:08 2025-05-13 UTC+2

USA and China: A 90-Day Truce. U.S. Inflation Report in Focus (High probability of a decline in EUR/USD and GBP/USD)

On Monday, the markets breathed a sigh of relief following the announcement of a trade agreement between the United States and China. The deal involves mutual tariff reductions, but only

Pati Gani 10:07 2025-05-13 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.