GBP/JPY rebounded above 199, with diverging BOE and BOJ policies supporting cross-currency trading.
2025-09-10 14:13:38
GBP/JPY rebounded on Wednesday after retreating from a high of 200.35 this week. In the UK, market bets on an immediate interest rate cut declined, supporting the relative performance of the pound.
In Japan, the yen is being impacted by domestic political uncertainty, with market concerns that US policies and international developments may force the Bank of Japan to slow policy normalization. Meanwhile, continued investor expectations of a possible rate hike by the Bank of Japan this year are providing some support for the yen and potentially limiting further upside in the GBP/JPY pair.
In addition, rising risk appetite is also an important factor supporting the rebound of GBP/JPY. However, geopolitical tensions and ongoing trade-related uncertainties may limit the yen's downside and form an upper limit for the cross's upward movement.
Analysts pointed out: "The policy divergence between the BoJ and the BoE makes GBP/JPY still need to be cautious in the short-term rebound, especially in the absence of key economic data catalysts."
Market Outlook and Key Events In the short term, investors are likely to wait and see the upcoming macroeconomic data from the UK, including the monthly GDP data on Friday. These data will provide key impetus for the British pound and may influence the next move of the GBP/JPY pair.
GBP/JPY rebounded during Wednesday's Asian session. Technical analysis suggests that near Tuesday's low, the 198.50-198.70 area is primary support, below which the pair could test the 197.50 level. The recent high of 200.35 is key resistance, a break of which could lead to a retest of the 200.50 and 201 psychological levels.
The short-term trend is still consolidating and strong, but investors need to pay attention to the volatility risks in the absence of strong economic data.
Editor's Note: The GBP/JPY pair's short-term rebound benefited from the relative strength of the British pound and improved risk appetite, but policy support for the Japanese yen and political uncertainty have limited further gains in the cross. Focus should be on UK macroeconomic data and Japanese yen policy signals to determine whether a subsequent breakout or consolidation will occur.
In Japan, the yen is being impacted by domestic political uncertainty, with market concerns that US policies and international developments may force the Bank of Japan to slow policy normalization. Meanwhile, continued investor expectations of a possible rate hike by the Bank of Japan this year are providing some support for the yen and potentially limiting further upside in the GBP/JPY pair.
In addition, rising risk appetite is also an important factor supporting the rebound of GBP/JPY. However, geopolitical tensions and ongoing trade-related uncertainties may limit the yen's downside and form an upper limit for the cross's upward movement.
Analysts pointed out: "The policy divergence between the BoJ and the BoE makes GBP/JPY still need to be cautious in the short-term rebound, especially in the absence of key economic data catalysts."
Market Outlook and Key Events In the short term, investors are likely to wait and see the upcoming macroeconomic data from the UK, including the monthly GDP data on Friday. These data will provide key impetus for the British pound and may influence the next move of the GBP/JPY pair.
GBP/JPY rebounded during Wednesday's Asian session. Technical analysis suggests that near Tuesday's low, the 198.50-198.70 area is primary support, below which the pair could test the 197.50 level. The recent high of 200.35 is key resistance, a break of which could lead to a retest of the 200.50 and 201 psychological levels.
The short-term trend is still consolidating and strong, but investors need to pay attention to the volatility risks in the absence of strong economic data.
Editor's Note: The GBP/JPY pair's short-term rebound benefited from the relative strength of the British pound and improved risk appetite, but policy support for the Japanese yen and political uncertainty have limited further gains in the cross. Focus should be on UK macroeconomic data and Japanese yen policy signals to determine whether a subsequent breakout or consolidation will occur.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
