After continuous declines last week, GBP/JPY finally rebounded, mainly due to a correction in yen strength rather than pound buying. However, challenges like the impact of Trump’s tariffs and the uncertain situation in Ukraine continue to pressure the UK economy.
Recently, MPC member Dinghra stated that “UK consumption is unusually weak compared to Europe,” “the UK economy’s weakness is due to low demand,” and “cutting rates by 0.25% every quarter is not a slow pace.” These comments suggest that more rate cuts may be needed to support the economy.
Meanwhile, expectations of an early rate hike by the Bank of Japan keep GBP/JPY under pressure due to differences in monetary policy.
GBP/JPY Forecast Range: 189.60 – 187.30
Note: This information does not guarantee profits. Make your own decisions when trading.