GBP/JPY is trading lower on Tuesday, extending its pullback from Monday’s 14-month high near 200.35, as investors reassess the monetary policy outlook on both sides of the cross.
The US Dollar depreciates against the Japanese Yen for the third consecutive day on Tuesday, reaching two-week lows below 146.50 and approaching August’s trough, at 146.20.
The EUR/USD pair post back-to-back bullish days, rising over 0.37% on Monday as traders grow confident that monetary policy in the United States (US) will resume its easing cycle after the Federal Reserve (Fed) Chair Jerome Powell acknowledged the weakness of the labor market.