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GBP/JPY rebounds from weekly low as Yen stays under pressure

The GBP/JPY is trading around the 209.00 level after reversing a dip to 208.20 to 208.15, while traders watch for renewed Japanese currency intervention.

Reported · Written up by our desk · Major Pairs

The GBP/JPY cross reversed an intraday dip into the 208.20 to 208.15 area on Thursday, stalling the prior day’s retracement after a one-and-a-half-week low, FXStreet reported.

Spot prices lacked follow-through and were holding around the 209.00 round figure in early European trade, with the exchange rate nearly unchanged on the day amid mixed signals.

FXStreet said the Japanese yen remains hard to buy as markets focus on anxiety around Japan’s aggressive expansionary fiscal policies and large public debt, which is seen as providing some support to GBP/JPY.

At the same time, FXStreet noted traders are on alert for possible new Japanese intervention, while hawkish Bank of Japan expectations, including comments from BoJ Governor Kazuo Ueda and a surprise from board member Ayano Sato on Wednesday, are viewed as limiting downside in the yen.

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