GBP/JPY Rises Above 202.50 as Traders Await Key UK Economic Data
The GBP/JPY pair is trading with a positive tone, staying above the 202.50 level after recovering from a small dip earlier in the Asian session. Buyers seem active, but the upward move is still limited as traders wait for new clues from the UK economy.
All eyes are now on the upcoming UK GDP data, which could shape the next steps for the Bank of England (BoE). If the numbers show weak growth, it may increase the chances of more interest rate cuts, which can put pressure on the British Pound.
Meanwhile, the Japanese Yen (JPY) is finding support from expectations that the Bank of Japan (BoJ) might raise rates by the end of the year. However, political uncertainty in Japan could slow down any aggressive rate hikes, keeping GBP/JPY from falling too sharply.
For now, traders are being cautious, waiting for clear signals before taking big positions. The next support zone is near 201.50, while the pair could face resistance if it moves above the 203.00 mark.
Impact:
If UK GDP data comes weak, the pound could lose strength.
The yen might stay firm if BoJ hints at tightening.
GBP/JPY may stay volatile in the short term as both sides wait for economic updates.
