The GBP/JPY cross is experiencing a downward trend, hitting a three-and-half-week low below the 188.00 mark during the Asian session on Friday. The Japanese Yen (JPY) is seeing continued buying interest, supported by hawkish expectations from the Bank of Japan (BOJ).
BOJ Governor Kazuo Ueda’s recent comments about potential interest rate hikes have contributed to the strength of the JPY. Additionally, positive data on real wages in Japan and concerns about the US economy have fueled investor appetite for safe-haven assets, further pushing down the GBP/JPY cross.
Technical indicators suggest that the GBP/JPY pair is likely to continue its downward trajectory, with support levels broken and bearish sentiment prevailing. Traders should be cautious as the JPY maintains its strength and the GBP struggles to find support.
Overall, the current market conditions indicate a favorable environment for JPY investments and a challenging outlook for the GBP. Investors should closely monitor developments in the global economy and geopolitical landscape to make informed decisions about their portfolios.