GBP/JPY Stays Strong Below 196.00 as Japanese Yen Remains Weak
On May 29, 2025, the British Pound (GBP) stayed strong against the Japanese Yen (JPY), with the GBP/JPY pair trading just below 196.00. This happened mainly because the Yen is getting weaker. Investors believe the Bank of Japan (BoJ) will keep its interest rates very low for now, which puts pressure on the Yen.
Meanwhile, the Bank of England (BoE) has kept its interest rates unchanged, helping the Pound stay strong. Because of this, GBP/JPY has been moving up
On the technical side, the pair is holding above key support levels and is showing signs of strength.
It is trading above the Ichimoku Cloud, which often suggests a possible uptrend. But if the price drops below the 193.00 level, it could fall further toward 191.80 or even 191.60.
The Japanese Yen also lost strength because the BoJ recently decided to keep interest rates at 0.5%. On top of that, they lowered their growth and inflation outlooks, which shows a soft approach to the economy. Positive global market sentiment is also making the Yen weaker.
Impact: If the BoJ continues with its low-rate policy, the Yen might stay weak. This could help GBP/JPY move above 196.00. But sudden changes in global markets or policies could affect this trend.