On December 19, the Bank of England (BOE) decided not to lower interest rates during its meeting. As a result, GBP/JPY rose for the fifth day in a row. It closed at 198.70 yen, approaching the December 19 high of 198.95 yen.
Recently, signs of inflation picking up again in the UK have emerged. This has led to expectations that the BOE will also avoid cutting interest rates at its next meeting, supporting the pound’s strength.
As the year-end approaches, there are fewer market participants. If GBP/JPY breaks above 198.95 yen, it may trigger stop-loss orders, possibly pushing the pair to test the October 30 high of 199.80 yen again.
This Week’s GBP/JPY Forecast Range: 199.80–197.80 yen
Note: The above content does not guarantee profits. Please make your own trading decisions.