GBP/JPY Drops Below 192.00 as Safe Haven Demand Lifts Yen
The GBP/JPY pair fell below the 192.00 mark on July 29, 2025. This drop came as the Japanese yen strengthened and the British pound weakened.
The yen gained support due to rising safe haven demand. Investors are feeling uncertain about global markets and are moving their money into safer assets like the yen. This usually happens when there are worries about major events, like central bank meetings or changes in interest rates.
At the same time, the pound came under pressure. Traders are now expecting the Bank of England to cut interest rates soon, possibly as early as August. This expectation grew stronger after weak job data from the UK. Lower interest rates make a currency less attractive to investors, which is why the pound is falling.
Even though GBP/JPY is down, traders are still waiting for more news—especially the Bank of Japan’s policy decision coming later this week. There’s also talk about Japan’s recent trade deals and how they might support the economy. But signs of falling inflation in Japan could slow down any plans to raise interest rates there.
Right now, the pair is stuck between yen strength and pound weakness, with both currencies driven by different central bank expectations.
Impact:
GBP/JPY could stay weak if safe haven demand continues. BoJ policy signals and BoE rate decisions might shift the direction in the coming days.