GBP/JPY Slips From 2024 Highs as Yen Demand Heats Up
The GBP/JPY pair fell to the mid-199.00 level in Tuesday’s Asian session after touching 200.35 yesterday — its highest point since July 2024. The pullback comes as the Japanese yen (JPY) gains strength. Traders are betting that the Bank of Japan (BoJ) may raise interest rates later this year. Freshly revised GDP growth, stronger household spending, and rising real wages in Japan are all fueling these expectations.
Meanwhile, the British pound (GBP) is holding some ground thanks to a weaker US dollar (USD) and strong UK retail sales data. In August, retail sales rose 2.9%, beating forecasts and hitting the fastest pace in four months. This has given GBP some support even as JPY demand rises.
However, worries about the UK’s financial health are keeping investors cautious. Concerns over public finances and the upcoming Autumn Budget in November could limit any sharp upside for GBP/JPY in the near term.
Impact:
The GBP/JPY pair might stay under pressure if yen demand continues. Still, better UK data or a softer dollar could possibly help the pound recover.
