GBP JPY

It’s a big week for the Japanese Yen. While the BoJ may not pose any moves to rates the quarterly outlook could keep the JPY on the move after the last release triggered a breakdown in USD/JPY.

USD/JPY tested a major level earlier this week but, so far, it’s held as support. EUR/JPY and GBP/JPY present compelling backdrops on each side of the Japanese Yen.

USD/JPY has put in a support bounce at a big spot on the chart following last Friday’s bearish engulf. GBP/JPY is of interest for JPY-weakness, and EUR/JPY for JPY-strength.

Yen weakness has continued to show, and USD/JPY has jumped up to a key Fibonacci level on the way to fresh three-week highs.

USD/JPY was on the verge of breakdown last week, but the pair has popped back above 150.00, which remains a critical level in the pair.

A weaker US dollar and Japanese yen has allowed GBP/USD and GBP/JPY to regain some lost ground. And both pairs can likely build upon these early gains, GBP/USD could be the outperformer.

The Japanese Yen has shown significant drive around U.S. CPI reports over the past few years, setting the stage for tomorrow’s release.

The Bank of England cut rates last week but it was the two votes for a 50 bp cut that weighed on the currency on Thursday and Friday.

A dovish BOE cut and bets that a BOJ hike could be much closer than expected saw GBP/JPY lead the way lower on Thursday. But price action across the board suggests it could be year of the yen.

USD/JPY has shown a higher-low on the daily chart and at this point it seems to have evaded much of the tariff drama that’s engulfed other USD-pairs.

Yen-weakness is showing prominently against both the Euro and British Pound after the BoJ rate hike, and USD/JPY has held a major spot of support at 155.00.