GBP/JPY breaches 197.00 for the first time since 2008

Source Fxstreet

Apr 26, 2024 19:56

GBP/JPY continues to grind into multi-year highs.
Japanese Yen continues to erode across the board.
BoJ reaffirms monetary policy stance, markets pummel JPY.

GBP/JPY touched chart territory above 197.00 for the first time since September of 2008 as markets meet the Bank of Japan (BoJ) head-on and batter the Yen into decades-long lows.

The BoJ maintained its hyper-easy monetary policy, prompting a broad-market Yen selloff. The Japanese central bank will resume large-scale Japanese government bond purchasing, and BoJ Governor Kazuo Ueda paid lip service with little action on Yen exchange rates, inflation, and interest rate forward guidance in a broadly disappointing BoJ showing.

Coming up next week, a light economic calendar from the UK, and an update on Japan’s Retail Sales figures slated for early Tuesday. Retail Trade in Japan is expected to ease to 2.2% growth for the year ended in March, down from the previous period’s 4.6%.

GBP/JPY technical outlook

With the pair trading into 16-year highs, the Guppy is breaking into extremely bullish chart territory above the 197.00 handle. The GBP/JPY is up 10.2% from 2024’s early bounce from the 200-day Exponential Moving Average (EMA) near 180.00.

The Guppy is set for a fourth consecutive month-on-month gain, and the pair is up over 50% from 2020 lows set near 130.00.