GBP/JPY drew fresh selling after an intraday rise to 212.15–212.20 on Wednesday and slipped back towards the lower end of the day’s range in early European trade. The cross was trading near 211.70, as a firmer US Dollar, supported by expectations of more aggressive Federal Reserve tightening, weighed on sterling and added pressure to the pair. However, the Bank of England’s hawkish stance was a counterweight, with Deputy Governor Clare Lombardelli saying on Tuesday that further rate rises remain likely, citing elevated energy prices and UK economic resilience.
Japanese Economic Data and Yen Outlook
In Japan, Tuesday’s figures showed Household Spending fell for a 10th consecutive month in September, complicating the Bank of Japan’s case for additional rate increases. That, together with a risk-on tone, undermined the safe-haven yen and could curb near-term downside in GBP/JPY.
Upcoming UK Data and Technical Levels
Attention now turns to Thursday’s UK data slate, including the preliminary Q3 GDP release. Technically, the pair faces resistance at the 100-day Simple Moving Average near 213.00, and a sustained move above that level would be needed to reinforce upside traction.
Start trading now — click here to create your real VT Markets account.
