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

AUD/USD. Analysis and Forecast

The AUD/USD pair is attempting to attract buyers in its rebound from the psychological level of 0.5900, marking its lowest point since March 2020. The upward momentum has managed

Irina Yanina 12:39 2025-04-11 UTC+2

Markets Face a Prolonged Period of Instability (USD/JPY and USD/CHF Likely to Continue Falling)

On Thursday, investors realized there is currently no such thing as stability. High market volatility remains and will continue to dominate for some time. The ongoing cause of this remains

Pati Gani 09:11 2025-04-11 UTC+2

The Market Has Grown Used to Chaos

What is life if not a game? In past years, investors focused on the standoff between the Federal Reserve and financial markets. But in 2025, the rules of the game

Marek Petkovich 08:42 2025-04-11 UTC+2

What to Pay Attention to on April 11? A Breakdown of Fundamental Events for Beginners

A relatively large number of macroeconomic events are scheduled for Friday, but none are expected to impact the market. Of course, we may see short-term reactions to individual reports

Paolo Greco 06:04 2025-04-11 UTC+2

GBP/USD Overview. April 11: The Market Didn't Believe Trump

The GBP/USD currency pair also traded higher on Thursday. As a reminder, macroeconomic and traditional fundamental factors currently have little to no influence on currency movements. The only thing that

Paolo Greco 03:28 2025-04-11 UTC+2

EUR/USD Overview. April 11: The American Comedy Continues

The EUR/USD currency pair declined sharply overnight on Wednesday but showed some recovery during the day. On Thursday, there was further growth—this series of fluctuations can only be described

Paolo Greco 03:28 2025-04-11 UTC+2

Trading Recommendations and Analysis for GBP/USD on April 11: The Dollar Takes a Double Hit

The GBP/USD currency pair also showed strong growth on Thursday, although not as strong as the EUR/USD pair. The pound gained only around 200 pips—which isn't a considerable move under

Paolo Greco 03:28 2025-04-11 UTC+2

EUR/USD. A Message from the Past: U.S. CPI Report Fails to Support the Dollar

The CPI report released on Thursday showed weaker-than-expected inflation. The market responded accordingly: the U.S. dollar came under renewed pressure (the U.S. Dollar Index fell into the 100.00 range)

Irina Manzenko 00:47 2025-04-11 UTC+2

The Euro Charges Ahead. Opponents Retreat

A rally in European stock indices, slowing U.S. inflation, and the fact that the average U.S. tariff has not changed significantly despite the 90-day deferral all contributed to the rise

Marek Petkovich 00:47 2025-04-11 UTC+2

XAU/USD. Analysis and Forecast

Today, gold maintains a positive tone, trading above the $3100 level. Concerns about the escalation of the trade war between the U.S. and China, along with fears of a global

Irina Yanina 20:05 2025-04-10 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.