GBP/JPY Exchange rate

Editors’ Picks

EUR/USD holds firm above 1.1750 as risk flows dominate

EUR/USD stays firm above 1.1760 in European trading hours on Wednesday, bolstered by improved risk sentiment, which dents the US Dollar's safe-haven appeal. Confidence returned on headlines indicating the United States and Iran are moving towards a deal to end the conflict. The deal would involve both sides lifting restrictions on transit through the Strait of Hormuz.

USD/JPY off lows, still down 1% on likely 'Yentervention'

USD/JPY is off ten-week lows but remains heavy near 156.00 in early Europe on Wednesday. Markets speculate another round of FX intervention by Japan's authorities behind the latest leg up in the Japanese Yen, keeping the bearish pressure intact on the currency pair.

Gold continues scaling higher; retakes $4,700 amid peace deal hopes

Gold extends its intraday ascent and climbs to an over one-week high, re-attempting $4,700 in Wednesday's European session. The US Dollar weakens across the board amid optimism over a potential US-Iran peace deal, helping the commodity to build on its recovery from a more than one-month trough, around the $4,500 mark set on Monday.

ADP Employment Report set to show US job market gained momentum in April

Developments in the Middle East conflict are likely to remain at the forefront this week, but investors will also keep an eye on a string of US labour market figures.

UK 30-year gilts hit 5.78%, the highest since 1998: what is being priced in? Premium

UK 30-year gilts traded as high as 5.78% on Tuesday, the highest level since 1998, while 10-year yields topped 5.10% with markets pricing in nearly three-quarter-point Bank of England (BoE) rate hikes this year.

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Signatures

GBP/JPY

The GBP/JPY pair indicates how many Japanese Yen (JPY) are required to purchase one British Pound (GBP). It is often referred to as a “carry currency cross”, meaning it is commonly used as a vehicle for carry trading, a popular trading strategy. A carry trade involves selling or borrowing an asset with a low interest rate to invest in another asset with a higher interest rate, aiming to profit from the underlying interest rate difference. This strategy is widely used in the foreign exchange (Forex) market.

HISTORIC HIGHS AND LOWS FOR GBP/JPY

All-time records: Max: 1,014.00 on 01/01/1963 - Min: 116.85 on 19/09/2011
Last 5 years: Max: 208.11 on 05/07/2024 - Min: 124.07 on 13/03/2020

* Data as of December 2024

ASSETS THAT INFLUENCE GBP/JPY THE MOST

The GBP/JPY pair can also be impacted by:

Currencies: The US Dollar (USD) and the Euro (EUR). This group also includes the following currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, USD/CAD and EUR/JPY.
Commodities: Oil.
Bonds: Gilt (debt securities issued by the Bank of England), GTJPY10Y (Japan government 10-year bond) and T-Note (Treasury Note, a marketable US government debt security).
Indices: FTSE 100 (a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization), Nikkei 225 (a stock market index for the Tokyo Stock Exchange) and Dow Jones (DJIA or Dow Jones Industrial Average, an index tracking the performance of 30 large publicly-owned companies during a standard trading session).

INFLUENTIAL ORGANIZATIONS AND PEOPLE FOR THE GBP/JPY

The organizations and people that affect the most the moves of the GBP/JPY pair are:

Bank of England (BoE). It is the central bank of the United Kingdom (UK). Known as ‘The old lady of Threadneedle Street’, is responsible for maintaining the UK’s economic stability. It operates monetary policy by adjusting the Bank Rate and, in certain circumstances, supplements this with measures such as quantitative easing. Andrew Bailey has been the Governor of the BoE since March 2020 and his appointment ends on March 2028.
Bank of Japan (BoJ). It is the central bank of Japan. The BoJ sets monetary policy in the country and its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%. Kazuo Ueda is the 32nd and current Governor of the BoJ. He is widely regarded as an expert on monetary policy but was considered a surprise appointment by analysts. Ueda is the first academic economist to lead the BoJ in the post-World War II era.
UK Government and its prime minister, Keir Starmer, who took office on July 2024, becoming the first Labour prime minister since Gordon Brown in 2010 and the first one to win a general election since Tony Blair in 2005.
Japanese Government and its prime minister Shigeru Ishiba, who replaced Fumio Kishida in October 2024.