On Monday, when the Tokyo market was closed, GBP/JPY started with selling pressure. It dropped from 192.75 yen to 190.08 yen during the London market. However, in the New York market, the NY Dow rebounded sharply after last week’s drop, leading to yen weakness and pushing GBP/JPY back above 192 yen. The strong selling trend from last week has temporarily eased.
With the UK and US Consumer Price Index (CPI) reports coming tomorrow, some adjustment and buying back are expected.
However, if Bank of Japan (BOJ) Deputy Governor Himino shows a positive stance on raising interest rates in today’s press conference, GBP/JPY might test yesterday’s low of the 190 yen range again.
GBP/JPY Predicted Range: 193.20–190.50
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