empty
13.02.2025 12:33 PM
GBP/JPY: Analysis and Forecast

This image is no longer relevant

The GBP/JPY pair has been demonstrating a steady recovery this week, rebounding from around 187.00, the lowest level since September 2024. On Thursday, the pair extended its positive momentum for the fourth consecutive day, though spot prices remain below the key psychological level of 193.00.

Optimistic UK macroeconomic data has been supporting the pound's recovery. The UK Office for National Statistics (ONS) reported an unexpected 0.1% quarter-on-quarter GDP growth for the three months ending in December 2024, following zero growth in the previous quarter. Year-on-year GDP growth for Q4 reached 1.4%, exceeding expectations of 1.1% and the 0.9% increase seen in Q3.

Additionally, industrial production and manufacturing output data also outperformed forecasts, contributing to the pound's modest rise.

The weakness of the Japanese yen is another key factor driving GBP/JPY higher. Investors remain cautious about the potential economic consequences of President Donald Trump's new tariffs on raw material imports, adding further uncertainty to global markets. Meanwhile, positive sentiment in equity markets has reduced demand for safe-haven assets such as the yen.

However, expectations of a rate hike by the Bank of Japan (BoJ), reinforced by strong Producer Price Index (PPI) data, could limit aggressive yen selling.

Despite this, the Bank of England's (BoE) gloomy outlook may also cap further GBP/JPY gains. Last week, the BoE lowered its 2025 GDP growth forecast from 1.5% to 0.75%, with Governor Andrew Bailey reiterating the likelihood of further rate cuts this year.

To confirm a trend reversal from bearish to bullish, GBP/JPY needs sustained buying pressure above 193.00. However, as daily chart oscillators have yet to enter positive territory, further upside potential remains limited for now.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Is the Euro Ready for Another Rate Cut?

We'll find out very soon whether the euro is once again prepared for the European Central Bank (ECB) to continue easing monetary policy. Today, the ECB is expected to lower

Jakub Novak 11:38 2025-04-17 UTC+2

Powell Sees a More Restrictive Fed Policy This Year

The euro showed little reaction, while the pound slipped slightly against the U.S. dollar following yesterday's speech by Federal Reserve Chairman Jerome Powell. According to Powell, the Fed is currently

Jakub Novak 11:34 2025-04-17 UTC+2

Markets swing between euphoria and panic

If you believe a recession is looming, the rule is simple: sell first, ask questions later. When the National Bureau of Economic Research officially declared a recession in the United

Marek Petkovich 09:55 2025-04-17 UTC+2

No Progress in Negotiations

This week, the European Union and the United States made no significant progress in resolving trade disputes, as officials from President Donald Trump's administration indicated that most of the U.S

Jakub Novak 18:48 2025-04-16 UTC+2

XAU/USD. Analysis and Forecast

Gold continues to draw investor attention, particularly in times of heightened uncertainty in financial markets. Trade Uncertainty: Ongoing uncertainty in trade relations between the U.S. and China makes gold

Irina Yanina 11:50 2025-04-16 UTC+2

USD/CHF. Analysis and Forecast

The USD/CHF pair is attracting new sellers today, showing signs of weakness under current economic conditions, driven by several key factors. Weak U.S. Dollar: The U.S. Dollar Index, which tracks

Irina Yanina 11:41 2025-04-16 UTC+2

Time works against market

Time is not on Donald Trump's side, nor the side of the US stock market. The longer the uncertainty surrounding White House policy drags on, the more likely it becomes

Marek Petkovich 11:39 2025-04-16 UTC+2

Confrontation Between the U.S. and China Will Negatively Impact Markets (Potential for Renewed Declines in #NDX and Litecoin)

Market optimism, fueled by Donald Trump's active manipulation of the tariff narrative, was short-lived. Traders remain focused on the escalating tensions between the U.S. and China following the U.S. Department

Pati Gani 11:34 2025-04-16 UTC+2

What to Pay Attention to on April 16? A Breakdown of Fundamental Events for Beginners

A few macroeconomic events are scheduled for Wednesday, but some important reports will be released. However, the current key issue is not the reports' significance but how the market will

Paolo Greco 07:06 2025-04-16 UTC+2

GBP/USD Overview – April 16: The Pound Sees No Limits

On Tuesday, the GBP/USD currency pair continued its upward movement. Although this rally was not as strong as last week's surge, the British pound kept rising steadily, with barely

Paolo Greco 03:35 2025-04-16 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.