GBP/JPY Rises to Two-Week High as Traders Wait for Bank of Japan Decision
The GBP/JPY pair went up on Monday, reaching close to 204.00 — its highest level in two weeks. Traders are now watching the Bank of Japan’s upcoming policy meeting, which could bring new changes to the Japanese Yen.
The Yen became weaker after Japan’s new Prime Minister, Sanae Takaichi, said she plans to increase defence spending and launch a big financial support plan. This news made investors less interested in the Yen. Meanwhile, the British Pound gained strength because of positive UK data. Retail sales for September were better than expected, and the latest business activity report (PMI) for October also showed improvement in the UK economy.
From a chart view, GBP/JPY broke above the 201.15 level and found support near 201.50. The strength indicator (RSI) is above 60, which means buyers are still active. If the price stays above 204.00, it might move toward 205.30. But if it falls below 200.70, it could drop further to around 198.80 or even 197.50.
Impact:
GBP/JPY could rise more if the Bank of Japan keeps a soft policy and the Pound stays strong. But if the BoJ gives a hawkish surprise, the pair might fall slightly.
