GBP/JPY Slides After Failing to Hold 199.00
The GBP/JPY pair climbed above 199.00 during the Asian session but couldn’t hold its gains, slipping back near 198.65. Selling pressure increased as traders reacted to rising UK bond yields and market uncertainty.
UK 30-year gilt yields jumped to their highest level since 1998, raising fears about government borrowing and adding pressure on the British pound. Political tensions and weak market sentiment are also weighing on GBP performance.
On the Japanese side, the yen (JPY) remains under pressure due to cautious comments from the Bank of Japan (BoJ) about possible rate hikes and ongoing political uncertainty. This limited the pair’s losses as traders remained wary of aggressive yen buying.
Market players now look to upcoming UK Services PMI data and a Bank of England (BoE) speech for fresh trading signals. Until then, volatility is expected to stay high in the forex market.
Impact:
A drop below 198.00 could trigger more GBP/JPY selling, while positive UK data or hawkish BoE comments might support a rebound, boosting risk appetite in major currency pairs.
