GBP/JPY retreats from five-month high near 197.00 after BoJ’s policy decision

Source Fxstreet
  • GBP/JPY faces pressure after refreshing five-month high near 196.85 after the BoJ held interest rates unchanged at 0.5%.
  • The BoJ expects the underlying inflation to return to its target in the second-half of fiscal 2025-2027 period.
  • Investors expect the BoE to leave interest rates unchanged on Thursday.

The GBP/JPY pair falls back to near 196.15 during late Asian trading hours on Tuesday after posting a fresh five-month high around 196.85 earlier in the day. The pair faces selling pressure as the Japanese Yen (JPY) attracts bids after the Bank of Japan (BoJ) announced the monetary policy, in which it left interest rates steady at 0.5% for the third consecutive meeting.

Japanese Yen PRICE Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the British Pound.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.00% 0.03% -0.12% 0.02% -0.18% -0.21% -0.04%
EUR -0.01% -0.01% -0.10% -0.00% -0.16% -0.13% -0.07%
GBP -0.03% 0.00% -0.16% 0.00% -0.15% -0.17% -0.06%
JPY 0.12% 0.10% 0.16% 0.14% -0.06% -0.08% 0.06%
CAD -0.02% 0.00% -0.00% -0.14% -0.27% -0.15% -0.07%
AUD 0.18% 0.16% 0.15% 0.06% 0.27% 0.01% 0.09%
NZD 0.21% 0.13% 0.17% 0.08% 0.15% -0.01% 0.08%
CHF 0.04% 0.07% 0.06% -0.06% 0.07% -0.09% -0.08%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

The BoJ was expected to hold borrowing rates at their current levels as Governor Kazuo Ueda had already guided that policymakers would tighten financial conditions when they get convinced that the underlying inflation will move around the central bank’s target of 2%.

Japanese central bank has predicted that the underlying inflation will come to its target in the 2nd half of fiscal 2025 to 2027 period. On global risks, the BoJ has stated that they will closely monitor the impact of trade war on financial, forex markets, domestic growth, and inflation.

Meanwhile, the Pound Sterling trades cautiously ahead of the United Kingdom (UK) Consumer Price Index (CPI) data on Wednesday and the Bank of England’s (BoE) monetary policy announcement on Thursday. Economists expect the UK inflation to have grown moderately, a scenario that will encourage traders to raise bets supporting the BoE to deliver more interest rate cuts this year.

On Thursday, the BoE is expected to leave interest rates steady at 4.25% as officials guided a “gradual and cautious” monetary easing approach in the May’s policy meeting, following an interest rate reduction by 25 basis points (bps).

 

Economic Indicator

BoJ Interest Rate Decision

The Bank of Japan (BoJ) announces its interest rate decision after each of the Bank’s eight scheduled annual meetings. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and raises interest rates it is bullish for the Japanese Yen (JPY). Likewise, if the BoJ has a dovish view on the Japanese economy and keeps interest rates unchanged, or cuts them, it is usually bearish for JPY.

Read more.

Last release: Tue Jun 17, 2025 03:31

Frequency: Irregular

Actual: 0.5%

Consensus: 0.5%

Previous: 0.5%

Source: Bank of Japan


Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
Gold Price Forecast: XAU/USD attracts some sellers to below $3,350 amid tariff uncertaintyThe Gold price (XAU/USD) attracts some sellers to around $3,320 during the early Asian session on Monday.
Author  FXStreet
14 hours ago
The Gold price (XAU/USD) attracts some sellers to around $3,320 during the early Asian session on Monday.
placeholder
Tesla crashes along with gold and S&P 500 as Bitcoin makes highest weekly close everTesla stock opened the week with a red candle, falling to $315.35, a 0.095% dip that lined up with a broader selloff across US equities and metals.
Author  Cryptopolitan
13 hours ago
Tesla stock opened the week with a red candle, falling to $315.35, a 0.095% dip that lined up with a broader selloff across US equities and metals.
placeholder
Ethereum Price Pushes Higher — Eyes Set on Next Major BarrierETH is now back above $2,550 and might soon aim for more gains. Ethereum started a fresh increase above the $2,550 level.
Author  NewsBTC
12 hours ago
ETH is now back above $2,550 and might soon aim for more gains. Ethereum started a fresh increase above the $2,550 level.
placeholder
Musk Announces New "American Party" — Tesla Shares Tumble Over 7% Amid Valuation FearsTesla’s after-hours trading saw shares fall over 7% , wiping out more than $70 billion in market value and showing no sign of stabilizing by the time of writing.
Author  TradingKey
6 hours ago
Tesla’s after-hours trading saw shares fall over 7% , wiping out more than $70 billion in market value and showing no sign of stabilizing by the time of writing.
Related Instrument
goTop
quote