Last year, the GBP/JPY showed steady movement, starting around 184 yen, rising to the low 208 yen range, then dropping to around 180 yen before recovering to 200 yen. However, the price struggled to go higher, forming a double-top pattern.
This year, it is expected that the Bank of England (BOE) might lower interest rates 2–3 times. Last week, the UK Manufacturing Index dropped from 4.73 to 4.70. Before the announcement, the pound weakened against both the dollar and yen, and it continued to fall afterward, reaching 194.20 yen. While there was some buying back by the weekend, the upward movement was limited.
This week, apart from the UK PMI, there are no major UK economic reports. Instead, attention will focus on the U.S. Employment Report. If the data is weak, it could lead to further selling of both the dollar/yen and pound/yen.
This Week’s GBP/JPY Forecast Range: 197.00–192.50 yen
Note: This information does not guarantee profits. Please make your own trading decisions.