GBP/JPY Exchange rate
Editors’ Picks
EUR/USD: Winds of change blowing into the Federal Reserve Premium
The EUR/USD pair fell towards 1.1417, its lowest since last March, as the US Dollar (USD) soared following the first Federal Reserve (Fed) monetary policy meeting chaired by Kevin Warsh. EUR/USD got to recover some ground on Friday, finishing the week, however, well below the 1.1500 mark.
Gold: Hawkish Fed leads to third consecutive weekly loss Premium
Gold (XAU/USD) opened with a bullish gap and registered strong gains in the first half of the week, but a hawkish Federal Reserve (Fed) spoiled the party. Mid-tier macroeconomic data releases from the United States (US) and changes in crude Oil prices could impact XAU/USD’s action in the near term, while the technical outlook suggests that the bearish bias remains intact.
British Pound rebounds as holiday-thinned trade slows USD bulls
The Pound Sterling recovers some ground after reaching a three-month low on Friday at 1.3163, sponsored by the Fed’s hawkish tilt, but edges up 0.18% amid thin trading conditions due to a holiday in the US. The GBP/USD trades at 1.3226, yet it is poised to end with weekly losses of 1.25%. Market sentiment remains fragile despite the recovery from the US-Iran deal.
US Dollar: The last mile just got longer Premium
A very auspicious week saw the US Dollar (USD) trade with robust gains, rapidly leaving behind the prior pullback and sending the US Dollar Index (DXY) to levels last traded in mid-May 2025, past the 101.00 barrier on Friday.
Bitcoin: Recovery hopes fade after the Fed spoils the party
Bitcoin (BTC) is set to end the week in the red, trading near the 200-Week Simple Moving Average (SMA) at around $62,300 on Friday. Institutional selling persists, capping BTC’s recovery as spot Exchange Traded Funds (ETFs) point to a sixth consecutive week of outflows.
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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 Sanae Takaichi , who replaced Shigeru Ishiba in October 2025.