GBP/JPY takes the bids to refresh the yearly high around 168.15 as bulls cheer the Bank of Japan’s (BoJ) status quo during early Friday. Also underpinning the cross-currency pair’s run-up could be the technical breakout and upbeat UK sentiment data.
BoJ held benchmark interest rates unchanged at -0.10% while also defending the latest 0.50% band of the Yield Curve Control (YCC) policy, as expected. However, the BoJ also said that they will take additional easing steps without hesitation as needed while striving for market stability. With this, the market took a sigh of relief that no change is likely under the new governorship.
Also read: BOJ Quarterly Outlook Report: Uncertainty over Japan's economy extremely high
Apart from the BoJ action, a jump in the UK business confidence, per the Lloyds Bank survey for March also seemed to have propelled the GBP/JPY price. As per the latest poll, the British Business Sentiment rallied to an 11-month high of 33.0% in March versus 32.0% prior. Additionally, the survey also showed a seven-month high in wage growth, which in turn can push the Bank of England (BoE) towards being more hawkish.
As a result, the divergence between the BoJ and BoE monetary policies offers an extra boost to the GBP/JPY prices.
Furthermore, cautious optimism in the market and upbeat Treasury bond yields allow the GBP/JPY pair buyers to keep the reins as well.
To sum up, the GBP/JPY pair buyers are properly set in the driver’s seat. However, BoJ Governor Kazuo Ueda’s press conference, scheduled at 06:30 AM GMT, will be crucial to watch for clear directions.
A clear upside break of the 168.00 double-top hurdle keeps GBP/JPY buyers hopeful of posting further upside towards the late 2022 peak near 169.30.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.